Week 5 Discussion - Topic: Production and Cost WEEK 5: Discussion Prompt In the accompanying figure, labor costs $100 per unit. The manager wants to produce 2,500 units of output. page 362] Answer the following questions: 90 E C Capital K) A Q= 2.500 0 10 20 30 40 50 60 Labor () a. At point A, the MRTS is (less than, greater than, equal to) the input price ratio wi. The total cost of producing 2,500 units with input combination A is $_ The price of capital is $ per unit. b. By moving from A to B. the manager (decreases, increases) labor usage and (decreases, increases) capital usage. The move from A to B decreases but leaves unchanged. At B, MRTS is (less than, greater than, equal to) the input price ratio wi. The total cost of producing at B is $_ C. At point C, the manager the cost of producing 2,500 units of output. MRTS is (less than, greater than, equal to) the input price ratio wit. d. The optimal input combination is units of labor and units of capital. The minimum total cost for which 2,500 units can be produced is $ e. Input combination E costs $ Explain why the manager does not choose input combination E