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The Figure Below Shows the Isocost Lines Facing a Firm

Question 33

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The figure below shows the isocost lines facing a firm producing golf tees. The figure below shows the isocost lines facing a firm producing golf tees.   FIGURE 8- 5 -Refer to Figure 8- 5. The firm that is facing the isocost lines as shown will minimize its cost of production of any given output level if it employs capital and labour such that the ratio of the marginal product of labour to the marginal product of capital (MPL / MPK)  is equal to A)  - not determinable from the information provided. B)  2. C)  2/5. D)  5. E)  5/2. FIGURE 8- 5
-Refer to Figure 8- 5. The firm that is facing the isocost lines as shown will minimize its cost of production of any given output level if it employs capital and labour such that the ratio of the marginal product of labour to the marginal product of capital (MPL / MPK) is equal to


A) - not determinable from the information provided.
B) 2.
C) 2/5.
D) 5.
E) 5/2.

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