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  3. Study Set
    Microeconomics Theory with Applications
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    Exam 7: Production Cost: Many Variable Inputs
  5. Question
    If MPL/w<sub>L </Sub>> MPK/w<sub>K</sub><sub>, </Sub>then the Firm Should Produce Using
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If MPL/wL > MPK/wK, then the Firm Should Produce Using

Question 38

Question 38

Multiple Choice

If MPL/wL > MPK/wK, then the firm should produce using:


A) less L and less K.
B) less L and more K.
C) more L and more K.
D) more L and less K.

Correct Answer:

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