Question
Which of the following represents the optimal combination of Capital and Labor under the goal of cost minimization in the long run? [MR=Marginal Revenue, MC=Marginal
Which of the following represents the optimal combination of Capital and Labor under the goal of cost minimization in the long run? [MR=Marginal Revenue, MC=Marginal Cost, MPL=Marginal Product of Labor, MPK=Marginal Product of Capital, K=Capital, L=Labor,PL=Price of Labor,PK=Price of Capital]
a.DK/DL= MPL/MPK
b.MR > MC
c.MPL/PL= MPK/ PK
d.MPL = MPK
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Managerial Economics and Strategy
Authors: Jeffrey M. Perloff, James A. Brander
2nd edition
134167879, 134167872, 9780134168319 , 978-0134167879
