4. Least-cost rule versus profit maximization Marvin's Milk Farm produces milk and sells it in a perfectly competitive market at $4 per bottle. The following table shows Marvin's weekly total and marginal product schedules, using labor and capital. Assume that labor and capital may be used independently; that is, one is not needed for the other factor to be productive. Therefore, the total amount of milk that Marvin's produces is obtained by adding together the amount of milk produced by labor and the amount of milk produced by capital. The table also shows total revenue and marginal revenue products (MRP) of labor and capital. Finally, assume that Marvin's Milk Farm is a factor price taker in the labor and capital markets, Labor costs $72 per week, and capital costs $48 per week. If Marvin's Mak farm wants to broduce 90 botthes of rulk per week, the least-cost combenation of labor and copital is ot capatal of labor and The profit mavomizing combinataon of resources is af taher mod of copetat. If Marvin's Milk Farm wants to produce 90 bottles of malk per week, the least-cost combination of labor and capital is of labor and of copital 4 units Milk farm wants to produce 90 bottles of milk per week, the least-cost combination of labor and capital is of labor and of capital. The profit-maximizing combination of resources is of labor and of copital. The profit-maxamizing combination contains the least-cost combination to produce 90 bottles of malk: Theprofit-maximizingcombinationofresourcesisTheprofit-maximizingcombinationcontains IfMarvinsMilkfarmwantstoproduce90byofcapital,Theprofit-maxsmizingcombinationofresourTheprofit-maximizingcombinationcontains.milk