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