Assume the Backwoods Shoe Company hires three inputs: labor (L), capital (K), and land (A) to produce shoes (X). Which of the following conditions must be met so that the firm is using the optimal, or least costly, combination of inputs?
A. MPL/PL = MPK/PK = MPA/PA
B. MPL = MPK = MPA = 1/PX
C. PL = PK = PA
D. MPL = MPK = MPA
Answer: A
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