Economics 9708 · AS & A Level · Factors of production

Factors of production — practice question

A firm uses two factors of production. The table gives the marginal products of these factors together with their costs at the present output level. Which change in the use of factors would be most likely to move the firm closer to the least-cost combination of inputs for its current level of output?

  • Aland less; labour less
  • Bland less; labour more
  • Cland more; labour less
  • Dland more; labour more

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