If a Firm Is Maximizing Profit and the Marginal Revenue

question 53

Multiple Choice

If a firm is maximizing profit and the marginal revenue product of labor is $10 and the marginal revenue product of capital is $30, then

• A)the marginal resource cost of labor is $3, and the marginal resource cost of capital is $0.33
• B)the marginal resource cost of labor is $0.33, and the marginal resource cost of capital is $3
• C)the marginal resource cost of labor equals the marginal resource cost of capital; both are $300
• D)the marginal resource cost of labor is 1/3 of the marginal resource cost of capital
• E)we have no way of knowing the marginal resource cost of either labor or capital

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Definitions:

Bridge Formula

The Bridge Formula is a regulatory weight formula used by transportation agencies to limit the maximum allowable weight that a vehicle can exert on a bridge or roadway, aiming to protect infrastructure from excessive wear and damage.

Uncomfortable Ride

An experience where a vehicle's journey is marked by excessive jolting, vibrations, or roughness, causing discomfort to the occupants.

Bogie Centerline

The central axis running through a bogie, which is a framework carrying wheels, attached to vehicles like trains and trailers for better load distribution.