For a Firm with Only Two Inputs, Capital and Labour

Multiple Choice

For a firm with only two inputs, capital and labour, the condition MPK/MPL = PK/PL guarantees that the firm is

A) minimizing its costs but is not necessarily maximizing its profits.
B) technically efficient but not economically efficient.
C) economically efficient but not technically efficient.
D) at its profit- maximizing output but is not necessarily minimizing its costs.
E) at its profit- maximizing and cost- minimizing level of output.