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

Multiple Choice

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

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