Assume the Backwoods Shoe Company hires three inputs: labor (L), capital (K), and land (A) to produce shoes (X). Which of the following conditions must be met so that the firm is using the optimal, or least costly, combination of inputs? OMPLIPL MPK/PK = MPA/PA O MPL = MPK = MPA = 1/PX O MPL = MPK = MPA O PL = PK = PA

Assume the Backwoods Shoe Company hires three inputs: labor (L), capital (K), and land (A) to produce shoes (X). Which of the following conditions must be met so that the firm is using the optimal, or least costly, combination of inputs? OMPLIPL MPK/PK = MPA/PA O MPL = MPK = MPA = 1/PX O MPL = MPK = MPA O PL = PK = PA

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter7: Production, Inputs, And Cost: Building Blocks For Supply Analysis

Section7.A: Appendix Production Indifference Curves

Problem 2TY

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