A firm wishes to minimize the cost of producing 2,000 units of output. The table below shows all of the combinations of Labor (L) and Capital (K) that will produce 2,000 units. The ratio of the price of labor to the price of capital is 2. How much capital and labor should the firm employ to minimize the total cost of producing 2,000 units? Capital (K)Labor (L) 

k                       L

20                   1

16                   2

13                    3

11                    4

10                     5

 

Transcribed Image Text:

OAK- 20 L1. OB. K- 16 L-2. OCK-12L-3. O D.K-11;L-4 OE.K- 10 L-5. OAK- 20 L1. OB. K- 16 L-2. OCK-12L-3. O D.K-11;L-4 OE.K- 10 L-5.

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