Solved

Suppose That Capital Costs $6 Per Unit and Labour Costs

Question 59

Multiple Choice

Suppose that capital costs $6 per unit and labour costs $3 per unit.If the marginal product of capital is 3 and the marginal product of labour is 6,the cost-minimizing firm should


A) employ more of both capital and labour.
B) employ less of both capital and labour.
C) employ more capital and less labour.
D) employ less capital and more labour.
E) not change its current factor use.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions