By Expressing the Cost- Minimizing Condition as MPK/MPL = PK/PL,we

Multiple Choice

By expressing the cost- minimizing condition as MPK/MPL = PK/PL,we are able to see

A) that the firm is producing at a lower cost if the left- hand side of the equation is greater than the right- hand side.
B) that the capital- labour ratio is fixed.
C) how the firm determines its profit- maximizing output.
D) that the ratio of factor prices is constant over time.
E) how the firm can adjust the marginal products of the factors of production to the prices of the factors given by the market.