A firm is employing 100 workers (W = $15/hour) and 50 units of capital (R = $30/hour). At the firm’s current input use, the marginal product of labor is 45 and the marginal product of capital is 60.
Is the firm producing its current level of output at the minimum cost?
| A. |
| B. |
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Is there a way for the firm to do better?
| A. |
| B. |
| C. |
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