Use the table to answer the question that follows. Quantity of Labor MP of Labor Quantity of Capital MP of Capital 1 30 1 50 2 25 2 40 3 20 3 35 4 15 4 15 5 10 5 5 What combination of labor and capital would satisfy the input hiring rule that minimizes the cost of production, if the price of labor is $5 and the price of capital is $10? A-1 unit of labor; 3 units of capital. B-2 units of labor; 2 units of capital C-3 units of labor; 2 units of capital. D-4 units of labor; 4 units of capital E-5 units of labor; 1 unit of capital

ECON MICRO
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ISBN:9781337000536
Author:William A. McEachern
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Chapter7: Production And Cost In The Firm
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Use the table to answer the question that follows.

Quantity of Labor MP of Labor Quantity of Capital MP of Capital
  1    30         1    50
  2    25         2     40
  3    20         3     35
  4    15         4     15
  5    10         5      5

What combination of labor and capital would satisfy the input hiring rule that minimizes the cost of production, if the price of labor is $5 and the price of capital is $10? 

A-1 unit of labor; 3 units of capital.  B-2 units of labor; 2 units of capital

C-3 units of labor; 2 units of capital.   D-4 units of labor; 4 units of capital

E-5 units of labor; 1 unit of capital

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