Question

A firm uses capital and labor. Profit is maximized when: I. P × MPL = PL....

A firm uses capital and labor. Profit is maximized when:

I. P × MPL = PL.

II. P × MPK = PK.

III. MPL/PL = MPK/PK.

IV. PK × APK = P.

Which of the following is correct?

a. I only.

b. II only.

c. I and II only.

d. I, II and III only.

e. All of the above.

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