How much to purchase capital nd labour in competitive market

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A firm purchases capital and labour in competitive markets at prices of r=$6/machine-hour and w=$4/labour-hour,respectively. With the firm's current input mix, the marginal product of capital is 12kg/machine-hour and the marginal product of labour is 18kg/labour-hour. Is this firm minimizing its costs? Explain your answer with the use of an appropriate diagram.

Reference no: EM13184671

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