To Minimize Costs, a Firm Should Use More Labor and Less

question 115

Multiple Choice

To minimize costs, a firm should use more labor and less capital if the product derived from the last dollar spent on labor is ________ the product derived from the last dollar spent on capital.

• A) less than
• B) greater than
• C) equal to
• D) either greater than or less than

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Definitions:

Fast Food Chains

A series of restaurants offering quick service and a menu of fast food cuisine spread across multiple locations.

Cartels

Associations of independent businesses or countries that work together to control prices and limit competition within an industry or commodity market.

Colluders

Parties that engage in a secret agreement, often illegal, to limit open competition by deceiving, misleading, or defrauding others of their legal rights.

Cutthroat Competitors

Businesses or individuals that engage in aggressive competition, using tactics that may include undercutting prices or other practices considered harsh or unfair.