You Are an Efficiency Expert Hired by a Manufacturing Firm

Multiple Choice

You are an efficiency expert hired by a manufacturing firm that uses K and L as inputs.The firm produces and sells a given output.If w = $40,r = $100,MP_L = 4,and MP_K = 40 the firm:

A) is cost minimizing.
B) should use less L and more K to cost minimize.
C) should use more K and less L to cost minimize.
D) is profit maximizing but not cost minimizing.