Question: 6. Marginal Analysis A. Explain how marginal analysis is used to determine the least-cost combination of labor and capital used to produce a given level

6. Marginal Analysis

A. Explain how marginal analysis is used to determine the least-cost combination of labor and capital used to produce a given level of output. (2 points)

B. Explain how marginal analysis is used to determine the profit-maximizing combination of labor (L) and capital (K) used to produce a given level of output. Give your answers in words and in an equation. (2 points)

C. Is the least-cost combination or resources also the profit-maximizing level of resources? Explain your answer. (3 points)

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