Producer Is Hiring 20 Units of Labor and 6 Units

question 72

Multiple Choice

producer is hiring 20 units of labor and 6 units of capital (bundle A) .The price of labor is $10,the price of capital is $2,and at A,the marginal products of labor and capital are both equal to 20.Beginning at A,if the producer increases labor by one unit and decreases capital by 1 unit,then

• A)cost remains constant and output increases by 20 units.
• B)cost remains constant and output decreases by 20 units.
• C)output remains constant and cost increases by $8.
• D)output remains constant and cost decreases by $8.
• E)both cost and output remain constant.

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Definitions:

Passion

A strong and barely controllable emotion or an intense, driving feeling of enthusiasm or desire for something.

Commitment

The state or quality of being dedicated to a cause, activity, or person.

Aggressive

referring to behavior or attitudes that are forceful, potentially harmful, or showing readiness to confront.

Media

Media encompasses the various channels and tools used to store, deliver, and exchange information, including television, radio, newspapers, and the internet.