Problem:
Suppose that a production process uses two inputs L and K. At a given level of output Q=50, the following are found:
MPL = 10, MPK = 15, PL = $2 and PK = $5.
Which of the following best describes this situation?
a. Too much L is being used and not enough K is being used.
b. Too much K is being produced and not enough L is being used.
c. There is not enough information to say what the situation is.
d. None of the above
Note: Explain all steps comprehensively.