# To minimize the cost of a particular level of output, a firm should produce where: a. labor...

## Question:

To minimize the cost of a particular level of output, a firm should produce where:

a. labor input equal capital input

b. (MPl/MPk) = r/w (MP stands for marginal product, w is the wage rate, and r is the unit cost of capital)

c. (MPl/MPk) = r/w

d. labor cost equals the capital cost.

## Marginal Product of Labor and Capital:

The marginal product of labor measures the change in output when the labor employed increases by 1 unit. The marginal product of capital likewise measures the change in output when capital employed increases by 1 unit.

## Answer and Explanation: 1

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View this answer*To minimize the cost of a particular level of output, a firm should produce where* **b. (MPl/MPk) = r/w (MP stands for marginal product, w is the wage...**

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Chapter 3 / Lesson 49Understand the meaning of marginal product of labor. Learn the marginal product of labor (MPL) formula, its significance, and how to calculate MPL with examples.

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