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

Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter25: The Supply Of And Demand For Productive Resources
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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]

 

  1. DK/DL  = MPL/MPK
  2. MR > MC
  3. MPL/PL= MPK/ PK
  4. MPL = MPK
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