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Refer to the Following Graph

Question 61

Multiple Choice

Refer to the following graph.The price of capital r) is $20. Refer to the following graph.The price of capital r) is $20. Why wouldn't the firm choose to produce 5,000 units of output with the combination at A? A) At A,MRTS < 3/2. B) At A,MP<sub>K</sub> / r > MP<sub>L </sub>/ w. C) At A,MP<sub>L</sub> > MP<sub>K</sub>. D) both a and b E) none of the above Why wouldn't the firm choose to produce 5,000 units of output with the combination at A?


A) At A,MRTS < 3/2.
B) At A,MPK / r > MPL / w.
C) At A,MPL > MPK.
D) both a and b
E) none of the above

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