If a Firm Uses Two Factors, Labor (L) and Capital

question 53

Multiple Choice

If a firm uses two factors, labor (L) and capital (K) , and MP_L/P_L > MP_K/P_K, the firm should use more _______ and _______ .

• A) capital; less labor
• B) labor; less capital
• C) labor; more capital
• D) capital; more labor

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Definitions:

Abuse

The improper usage or treatment of an entity, often to unfairly or improperly gain benefit; can refer to substances, individuals, or systems.

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Previous Fractures

History of broken bones in a patient's medical record, which may affect treatment plans, healing times, or risk assessments for future bone health.

Abuse

The maltreatment or misuse of someone or something, causing harm or distress.