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If the isocost line is tangent to the isoquant line: A: Marginal Product of labor/L is LESS than Marginal Product of capital/k B: Marginal product
If the isocost line is tangent to the isoquant line:
A: Marginal Product of labor/L is LESS than Marginal Product of capital/k
B: Marginal product of labor/L is GREATER than Marginal Product of capital/k
C: Marginal product of labor/L EQUALS Marginal Product of capital /K
D: Marginal Product of labor = Marginal product of capital
I don't think it is A OR B. (Can you also please explain this concept to me for better understanding?)
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