Multiple Choice
A firm's production function is given by Q = KL. The marginal products of labor and capital are, respectively, MPL = K and MPK = L. The wage rate of labor is w = $10 and the rental rate of capital is r = $20. The firm wants to produce 1,800 units of output. What is the most efficient combination of labor and capital ?
A) (10, 20)
B) (20, 90)
C) (60, 30)
D) (90, 20)
Correct Answer:

Verified
Correct Answer:
Verified
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