Refer to the Following

Multiple Choice

Refer to the following:

A producer is hiring 20 units of labor and 6 units of capital (bundle A) . The price of labor is $10, the price of capital is $2, and at A, the marginal products of labor and capital are both equal to 20.

-In equilibrium,

A) MP_L will be less than 20.
B) MP_K will be more than 20.
C) MP_L will be 5 times MP_K.
D) a and b
E) none of the above