The following is based on question 11 in the textbook: Suppose a firm has to choose among production methods for producing 1000kg of flour per day. The table shows the marginal product of capital and labour for each method. Suppose the price per unit of capital is $4 and the price per unit of labour is $6. Which method minimizes costs? A. A Method A B. B C. U C D E. E F. F G. G ABCDEFG с MPK 14 2086 + 12 10 4 2 MPL 3 6 9 12 15 18 21

Microeconomics A Contemporary Intro
10th Edition
ISBN:9781285635101
Author:MCEACHERN
Publisher:MCEACHERN
Chapter7: Production And Cost In The Firm
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The following is based on question 11 in the textbook: Suppose a firm has to choose among production methods for producing 1000kg of flour per
day. The table shows the marginal product of capital and labour for each method. Suppose the price per unit of capital is $4 and the price per unit of
labour is $6. Which method minimizes costs?
Method
A.
A
B.
B
C.
с
D.
D
E.
E
F.
F
G.
G
ABCDEFG
MPK
14
12
10
8
642
MPL
3
6
9
12
15
18
21
Transcribed Image Text:The following is based on question 11 in the textbook: Suppose a firm has to choose among production methods for producing 1000kg of flour per day. The table shows the marginal product of capital and labour for each method. Suppose the price per unit of capital is $4 and the price per unit of labour is $6. Which method minimizes costs? Method A. A B. B C. с D. D E. E F. F G. G ABCDEFG MPK 14 12 10 8 642 MPL 3 6 9 12 15 18 21
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