Assume the marginal product of labor is MPL= 20 and the marginal
product of
capital is MPK= 50. In...

Question

Assume the marginal product of labor is MPL= 20 and the marginal
product of
capital is MPK= 50. In addition, the price of labor is wL= 10 and the price of

capital is wK= 30. Then, if a manger wants to lower the costs of production,
the
manager should use
a) An equal number of workers and machines

b) More workers and more machines
c) More machines and fewer workers
d) More workers and fewer machines

Robert · Accepted Answer

Assume the marginal product of labor is MPL = 20 and the marginal product of  
capital is MPK = 50. In addition, the price of labor is wL = 10 and the price of 
capital is wK = 30. Then, if a manger wants to lower the costs of production,

Assume the marginal product of labor is MPL= 20 and the marginal product of capital is MPK= 50. In addition, the price of labor is wL= 10 and the price of capital is wK= 30. Then, if a manger wants to...

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