You are an efficiency expert hired by a manufacturing firm that uses Kand Las inputs. The firm produces and sells a given output. If w = $40, r= $100, MPL = 4, and MPK = 40 the firm: A) is cost minimizing. B.) should use less Land more K to cost minimize.C.) should use more Kand less L to cost minimize. Dj is profit maximizing but not cost minimizing.

You are an efficiency expert hired by a manufacturing firm that uses Kand Las inputs. The firm produces and sells a given output. If w = $40, r= $100, MPL = 4, and MPK = 40 the firm: A) is cost minimizing. B.) should use less Land more K to cost minimize.C.) should use more Kand less L to cost minimize. Dj is profit maximizing but not cost minimizing.

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter3: Benefits, Costs, And Decisions

Section: Chapter Questions

Problem 3.4IP

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