Suppose that a paving company produces paved parking spaces (q) using a fixed quantity of land...

 

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Suppose that a paving company produces paved parking spaces (q) using a fixed quantity of land (T) and variable quantities of cement (C) and labor (L). The firm is currently paving 1,000 parking spaces. The firm's cost of cement is $3,600.00 per acre covered (c) and its cost of labor is $25.00/hour (w). For the quantities of C and L that the firm has chosen, MPc = 60 and MP = 5. Is this firm minimizing its cost of producing parking spaces? O A. No since MPc does not equal MP. O B. No since w does not equal c. OC. Yes since MPc xc equals MPL x W. MPC does not equal MPL O D. No since Suppose that a paving company produces paved parking spaces (q) using a fixed quantity of land (T) and variable quantities of cement (C) and labor (L). The firm is currently paving 1,000 parking spaces. The firm's cost of cement is $3,600.00 per acre covered (c) and its cost of labor is $25.00/hour (w). For the quantities of C and L that the firm has chosen, MPc = 60 and MP = 5. Is this firm minimizing its cost of producing parking spaces? O A. No since MPc does not equal MP. O B. No since w does not equal c. OC. Yes since MPc xc equals MPL x W. MPC does not equal MPL O D. No since

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D No since MPLw does not equal ... View the full answer