given-the-cost-of-labor-is-10-per-hour-and-the-cost-of-capital-is-20-per-unit-wh

Question

Given the cost of labor is $10 per hour and the cost of capital is $20 per unit, what is the cost-minimizing combination of inputs if the isoquant curve is tangent to the isocost line at 5 units of labor and 3 units of capital?

Accepted Answer

5 units of labor and 3 units of capital.

Answer

4 units of labor and 4 units of capital.

Answer

3 units of labor and 5 units of capital.

Answer

6 units of labor and 2 units of capital.

Given the cost of labor is \$10 per hour and the cost of capital is \$20 per unit, what is the cost-minimizing combination of inputs if the isoquant curve is tangent to the isocost line at 5 units of labor and 3 units of capital?