Answer
The answer and procedures of the exercise are attached in the following archives.
Explanation
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
It is both true and false in a way that some mothers get pregnant to have a baby and some don't get pregnant on purpose. But usually these mothers connect with their baby in the womb. So true?
Answer:
B. Hire more labor and use less capital.
Explanation:
The firm producing at the profit-maximizing level of output means that Marginal Revenue = Marginal Cost, it can also be said that Marginal Productivity = Marginal wage/rent (Factor cost).
Therefore to minimize cost there should be a selection of factor mix that will be more efficient (i.e. comparing the cost of input to output) <u>which will be to use more of the cheaper input and less of the costlier input</u>
<u>Since the cost of labor is $10 and that of capital is $25, compared to the marginal productivity of 10 and 20 respectively, it can be seen that labor is the more efficient resource or factor. </u>
<u>Therefore</u><u> the cost minimizing choice of inputs</u><u> will be more of labor and less of capital will minimize costs</u>
