if-the-cost-of-labor-is-15-per-hour-and-the-cost-of-capital-is-25-per-unit-what-

Question

If the cost of labor is $15 per hour and the cost of capital is $25 per unit, what is the cost-minimizing combination of inputs if the isoquant curve is tangent to the isocost line at 4 units of labor and 5 units of capital?

Accepted Answer

4 units of labor and 5 units of capital.

Answer

3 units of labor and 6 units of capital.

Answer

5 units of labor and 4 units of capital.

Answer

6 units of labor and 3 units of capital.

If the cost of labor is \$15 per hour and the cost of capital is \$25 per unit, what is the cost-minimizing combination of inputs if the isoquant curve is tangent to the isocost line at 4 units of labor and 5 units of capital?