This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: When we solve the firm's cost minimization problem by the method of Lagrange multipliers, the ... (Read 247 times)

fahad

  • Hero Member
  • *****
  • Posts: 570
on: Jul 1, 2018
When we solve the firm's cost minimization problem by the method of Lagrange multipliers, the optimal value of the Lagrange multiplier equals the:
 
  A) marginal product of labor.
  B) marginal product of capital.
  C) marginal cost of production.
  D) cost-output elasticity.

Question 2

From any point within the production possibilities frontier,
 
  A) the only way to increase production of one good is to decrease production of the other.
  B) it is possible to increase both people's utility.
  C) it is possible to increase output of both goods.
  D) any move will necessarily decrease production of some good.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Tabitha_2016

  • Sr. Member
  • ****
  • Posts: 344
Reply #1 on: Jul 1, 2018
Answer to Question 1

C

Answer to Question 2

C


fahad

  • Member
  • Posts: 570
Reply 2 on: Jul 1, 2018
Great answer, keep it coming :)

scottmt

  • Member
  • Posts: 322
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

Egg cells are about the size of a grain of sand. They are formed inside of a female's ovaries before she is even born.

Did you know?

In ancient Rome, many of the richer people in the population had lead-induced gout. The reason for this is unclear. Lead poisoning has also been linked to madness.

Did you know?

According to the National Institute of Environmental Health Sciences, lung disease is the third leading killer in the United States, responsible for one in seven deaths. It is the leading cause of death among infants under the age of one year.

Did you know?

Blood is approximately twice as thick as water because of the cells and other components found in it.

Did you know?

Multiple experimental evidences have confirmed that at the molecular level, cancer is caused by lesions in cellular DNA.

How to solve a pair of linear equations using the Addition-Subtraction Method How to solve a pair of linear equations using the Addition-Subtraction Method
How to solve equations that contain cosine using special triangles (Part 1) How to solve equations that contain cosine using special triangles (Part 1)
Pavlov’s Method Pavlov’s Method
When operating your own business, it is wise to know your cost of capital and that of the ... When operating your own business, it is wise to know your cost of capital and that of the ...
Solve Diophantus’s Problem B–8: To find two numbers such that their difference a Solve Diophantus’s Problem B–8: To find two numbers such that their difference a
Offset Method Plot of Land with Measurements Offset Method Plot of Land with Measurements
Video: Energy inputs and release in glycolysis Animation

For a complete list of videos, visit our video library