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Which of the Following Statements Is (Are) TRUE, Assuming the Firm

Question 2

Multiple Choice

Which of the following statements is (are) TRUE, assuming the firm is choosing the optimal bundle of inputs that minimizes the cost of producing a given quantity of output?
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I. The marginal product per dollar spent on labor equals the marginal product per dollar spent on capital.
II. APL = APK
III. Which of the following statements is (are) TRUE, assuming the firm is choosing the optimal bundle of inputs that minimizes the cost of producing a given quantity of output? ​ I. The marginal product per dollar spent on labor equals the marginal product per dollar spent on capital. II. AP<sub>L</sub> = APK III. IV. MP<sub>L</sub> × W = MP<sub>K</sub> × R ​ A) I and II B) I, II, III, and IV C) IV D) I and III
IV. MPL × W = MPK × R
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A) I and II
B) I, II, III, and IV
C) IV
D) I and III

Correct Answer:

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