Question: The current wage rate is $ 1 0 , and the rental rate of capital is $ 4 0 0 . A firm's marginal physical

The current wage rate is $10, and the rental rate of capital is $400. A firm's marginal physical product of labor is 160, and its marginal physical product of capital is 30,000. Is the firm maximizing profits for the given cost outlay?
Part 2
A.
No. The marginal factor cost of labor is not equal to the marginal factor cost of capital.
B.
No. The marginal physical product of labor per dollar spent on wages is not equal to the marginal physical product of capital per dollar spent on capital.
C.
No. The marginal physical product of labor is not equal to the marginal physical product of capital.
D.
Yes. The firm is maximizing profits.

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