10 Suppose that a paving company produces paved parking tpaces (4) uning a fued quantity of land (T) and variablo quantites of cement (C) and labor (L) The fim currently paving 1,000 parking spaces- Thefirm's cost of cement is $30 00 per acre covered (c) and its cost of labor is $10 0ohour w. For the quantbes of Cand Lthat the fim has chosen, MP. = 00 and MP 4.is ths firm minimzing its cost of produong parking spaces?OA No since w does not equal eOB Yus since MPC xcequals MP xWOG. No since MP. does not equal MPOD. No snceMPdoes not equualMP.Does the firm need to ater its choces of Cand L lo decrease cout?OA Yes, they need to increate Lwhich would couse MP, to decrease and MP, to increase.OR Yes, they need to increase Lwhich would cause MP, lo increase and MP, lo dedeaseOc Yus, they need to incroase Cwhich would cause MP, to inorease and MP to decreaseOD, Y they nued to increase Cwhich would cane MP, to decrase and MP. o nerease

Cost minimization is a production technique used to mix the factors of production to produce the…

Suppose that a paving company produces paved parking spaces (a) using a fued quantity of land (T) and variable quanttes of cement (C) and labor () The finn a currently paving 1,00 par firm's cost of cement is $30 00 per acre covered (c) and its cost of labor is $10 00hour (w) For the quantbes of Cand Lthat the fim has chosen, MP.00 and MP 4. Is ths firm miniming its cost of produong parking spaces? OA No snce w does not equale OB Yos snce MPeXc equals MP xw OC. No since MP. does not equal MP MP does not equl MP OD. Ne Does the firm reed to ater ts dhoces of Cand L to decrease cou OA Yes, they need to inorease Lwhich would couse MP to decrease and MP to inoease, OR Ye, they need to increase Lwhich would cause MP, loinrease and MP o dedae OC Ws they need to rease Cwhch would cause MP to norease and MP. to decrease Oo Y they ned to increase Cwhich would cse MP to decraead MP,orase

Suppose that a paving company produces paved parking spaces (a) using a fued quantity of land (T) and variable quanttes of cement (C) and labor () The finn a currently paving 1,00 par firm's cost of cement is $30 00 per acre covered (c) and its cost of labor is $10 00hour (w) For the quantbes of Cand Lthat the fim has chosen, MP.00 and MP 4. Is ths firm miniming its cost of produong parking spaces? OA No snce w does not equale OB Yos snce MPeXc equals MP xw OC. No since MP. does not equal MP MP does not equl MP OD. Ne Does the firm reed to ater ts dhoces of Cand L to decrease cou OA Yes, they need to inorease Lwhich would couse MP to decrease and MP to inoease, OR Ye, they need to increase Lwhich would cause MP, loinrease and MP o dedae OC Ws they need to rease Cwhch would cause MP to norease and MP. to decrease Oo Y they ned to increase Cwhich would cse MP to decraead MP,orase

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter11: Profit Maximization

Section: Chapter Questions

Problem 11.9P

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