Refer to the following graph. The price of capital (r) is $20.Why wouldn't the firm choose to produce 5,000 units of output with the combination at B?

A. At B, MRTS < 3/2.
B. At B, MPK / r >MPL / w.
C. At B, MPL D. both a and b 
E. none of the above


Answer: D

Economics

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