Heavenly Delights, an Ice Cream Maker, Has Discovered That the Ratio

question 172

Multiple Choice

Heavenly Delights, an ice cream maker, has discovered that the ratio of the marginal product of labor to the price of labor is 4.5, while the ratio of the marginal product of capital to the price of capital is 6.9.The firm has determined that it does not want to change its total costs.Heavenly Delights should:

• A) do nothing; the differences in the ratios of marginal product to input price are too small to matter.
• B) use more labor and less capital.
• C) use more capital and less labor.
• D) give up ice cream production and produce broccoli instead.

---

Definitions:

Positive Discipline

A strategy focusing on positive reinforcement and problem-solving techniques to correct employee behavior instead of punishment.

Misconduct

Inappropriate or unlawful behavior by an individual, especially within a professional context, that violates established norms or regulations.

Grievance Procedure

A formal process that allows employees to lodge complaints or concerns regarding workplace issues, ensuring they are heard and addressed.