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.

---

Definitions:

Schizophrenia

is a severe mental disorder characterized by disruptions in thought processes, perceptions, emotional responsiveness, and social interactions.

Disturbances in Thought

Disruptions or abnormalities in the way one organizes, processes, or understands thoughts, often associated with psychological conditions.

Language

The communication of information by means of symbols arranged according to rules of grammar.

Motor Activity

Physical movement or actions that are produced by the muscles in response to nerve signals.