24. A perfectly competitive firm currently produces 1,000 units of output and hires its resources in...

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24. A perfectly competitive firm currently produces 1,000 units of output and hires its resources in a perfectly competitive factor market. It uses both labor and capital as inputs. The price of labor is $40;, the price of capital is $100. The marginal product of labor is 8 units, and the marginal product of capital is 10 units. Which of the following must be true? The firm is currently maximizing its profit. I The firm can produce more than 1,000 units without increasing the total cost if it uses more labor and less capital. The firm can produce more than 1,000 units without increasing the total cost if it uses more capital and less labor. The firm can reduce the cost of producing 1,000 units by using less capital and employing the same amount of labor. The firm can reduce the cost of producing 1,000 units by employing less labor and using the same amount of capital 24. A perfectly competitive firm currently produces 1,000 units of output and hires its resources in a perfectly competitive factor market. It uses both labor and capital as inputs. The price of labor is $40;, the price of capital is $100. The marginal product of labor is 8 units, and the marginal product of capital is 10 units. Which of the following must be true? The firm is currently maximizing its profit. I The firm can produce more than 1,000 units without increasing the total cost if it uses more labor and less capital. The firm can produce more than 1,000 units without increasing the total cost if it uses more capital and less labor. The firm can reduce the cost of producing 1,000 units by using less capital and employing the same amount of labor. The firm can reduce the cost of producing 1,000 units by employing less labor and using the same amount of capital

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E Firm can reduce cost of producing 1000 units by employing less ... View the full answer