You are an efficiency expert hired by a manufacturing firm that uses K and L as inputs. The firm produces and sells a given output. If w = $40, r = $100, MPL = 4, and MPK = 40 the firm: 

A.) is cost minimizing. 

B.) should use less L and more K to cost minimize.

C.) should use more K and less L to cost minimize. 

D.) is profit maximizing but not cost minimizing.

Answer rating: 100% (QA)

in order to minimize cost firm has to produce where the ratio ... View the full answer