Which of the following represents the optimal combination of Capital and Labor under the goal of cost minimization in the long run? [MR=Marginal Revenue, MC=Marginal Cost, MPL=Marginal Product of Labor, MPK=Marginal Product of Capital, K=Capital, L=Labor, PL =Price of Labor, PK =Price of Capital] DK/DL = MPL/MPK MR > MC MPL/PL= MPK/ PK MPL = MPK
Which of the following represents the optimal combination of Capital and Labor under the goal of cost minimization in the long run? [MR=Marginal Revenue, MC=Marginal Cost, MPL=Marginal Product of Labor, MPK=Marginal Product of Capital, K=Capital, L=Labor, PL =Price of Labor, PK =Price of Capital] DK/DL = MPL/MPK MR > MC MPL/PL= MPK/ PK MPL = MPK
Microeconomics A Contemporary Intro
10th Edition
ISBN:9781285635101
Author:MCEACHERN
Publisher:MCEACHERN
Chapter7: Production And Cost In The Firm
Section: Chapter Questions
Problem 18PAE
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Which of the following represents the optimal combination of Capital and Labor under the goal of cost minimization in the long run? [MR=Marginal Revenue, MC=Marginal Cost, MPL=Marginal Product of Labor, MPK=Marginal Product of Capital, K=Capital, L=Labor, PL =Price of Labor, PK =Price of Capital]
- DK/DL = MPL/MPK
- MR > MC
- MPL/PL= MPK/ PK
- MPL = MPK
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