The MPP of labor divided by its (labor's) price is greater than the MPP of capital divided by its (capital's) price. Costs can be minimized by Group of answer choices

Respuesta :

Answer: buying more labor and less capital.

Explanation:

Marginal Physical Product tells us about the efficiency involved when an additional unit of labor is added to the production system. It should be noted that in a production system, when there is a change in the input such as labor and capital, the output will be affected.

In this scenario, we are informed that The MPP of labor divided by its (labor's) price is greater than the MPP of capital divided by its (capital's) price. Therefore, costs can be minimized when more labor is bought and less capital.

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