Q1223
Statement I The least-cost or optimal input combination of labour capital requires that the marginal revenue productivity ratio of the two inputs should be equal to their price ration. Statement II In a hypothetical production function of the following from Q = L3 + 15L2 + 10 Where Q = Quantity of the product and L = No. of variable input (labour) the marginal physical productivity of labour is L2 + 15L + 10
A.
Both, statements are true
B.
Both, statements are false
C.
Statement I is true while Statement II is false
D.
Statement I is false, while Statement II is true
AnswerAnswer: Option D
Solution
Answer: Option D
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