A Textile Firm Operates a Plant in the North (Where

Multiple Choice

A textile firm operates a plant in the north (where labor is expensive relative to capital) as well as a plant in the south (where capital is expensive relative to labor) .In the figure below, the northern plant will most likely minimize costs by combining labor and capital in the amounts indicated by which of the following points?

A) A
B) B
C) C
D) D
E) E