In December, Alpha Corp faced a wage rate of $10 per hour and a capital rental rate

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In December, Alpha Corp faced a wage rate of $10 per hour and a capital rental rate of $10 per unit per hour. It used 50 workers and 50 units of capital. In January, Alpha Corp faced a wage rate of $5 per hour and a capital rental rate of $10 per unit per hour. It used 10 workers and 60 units of capital. Which of the following input combinations must produce less output than the amount Alpha produced in December:
(L, K) = (60, 60)
(L, K) = (60, 40)
(L, K) = (70, 30)
(L, K) = (80, 25)
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Microeconomics

ISBN: 978-1118572276

5th edition

Authors: David Besanko, Ronald Braeutigam

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