With Its Current Levels of Input Use, a Firm's MRTS

question 166

Multiple Choice

With its current levels of input use, a firm's MRTS is 3 (when capital is on the vertical axis and labor is on the horizontal axis) . This implies:

• A) the firm could produce 3 more units of output if it increased its use of capital by one unit (holding labor constant).
• B) the firm could produce 3 more units of output if it increased its use of labor by one unit (holding capital constant).
• C) if the firm reduced its capital stock by one unit, it would have to hire 3 more workers to maintain its current level of output.
• D) if it used one more unit of both capital and labor, the firm could produce 3 more units of output.
• E) the marginal product of labor is 3 times the marginal product of capital.

---

Definitions:

Significant Accomplishments

Achievements that have had a major impact on an individual's career or the progress in a particular field or area.

Bell Curve

A bell-shaped curve that typically represents the normal distribution of a variable or set of data, where most scores cluster around the mean, with symmetric tapering off towards the extremes.

Decrease with Age

A phenomenon where certain abilities, functions, or properties gradually diminish as one grows older.

Increase with Age

A process or phenomenon that grows or intensifies as one becomes older.