The Following Graph Shows One of a Firm's Isocost Curves

Short Answer

The following graph shows one of a firm's isocost curves and isoquants.

a. Combination A is not an economically efficient method of producing 4,000 units of output because, at A, _________ exceeds _________ or, in other words, _________ exceeds _________. The firm should increase ___________ and decrease ___________.
b. Combination B is not an economically efficient method of producing 4,000 units of output because, at B, _________ exceeds _________, or, in other words, _________ exceeds _________. The firm should increase ___________ and decrease ___________.
c. At the economically efficient method of producing 4,000 units of output the MRTS will equal _________.