A Firm's Production Function Is Given by Q = KL $(L, K)$

Multiple Choice

A firm's production function is given by Q = KL. The marginal products of labor and capital are, respectively, MP_L = K and MP_K = L. The wage rate of labor is w = $10 and the rental rate of capital is r = $20. What is the most efficient combination of labor and capital $(L, K)$ that also yields a cost of exactly $1000?

A) (10, 45)
B) (25, 50)
C) (50, 25)
D) (20, 40)