Multiple Choice
The table gives marginal product data for resources a and b. The output of these independent resources sells in a purely competitive market at $1 per unit. Assuming the prices of resources a and b are $5 and $8 respectively, what is the least costly combination of resources for the firm to employ in producing 238 units of output?
A) 3 of a and 7 of b
B) 7 of a and 5 of b
C) 6 of a and 4 of b
D) 4 of a and 6 of b
Correct Answer:
Verified
Correct Answer:
Verified
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