If the MPP of the Last Unit of Labor Hired

question 69

Multiple Choice

If the MPP of the last unit of labor hired equals 6 and the MPP of the last unit of capital hired equals 8, and the price of labor is $4 per unit and the price of capital is $4 per unit, then the firm

• A)is minimizing its costs with this combination of factors.
• B)is maximizing its profits with this combination of factors.
• C)should hire more labor and less capital in order to minimize its costs.
• D)should hire more capital and less labor in order to minimize its costs.
• E)a and b

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Definitions:

Cultural Norms

Shared expectations and rules that guide behavior of people within social groups.

Psychological Abnormality

Behaviour, speech, or thought that impairs the ability of a person to function in a way generally expected of him or her, in the context in which the unusual functioning occurs.

Sociocultural Factors

Influences that arise from the societal and cultural contexts of people's lives affecting their thoughts, behaviors, and emotions.

Bodily Fluids

Liquids produced by the body to carry out its functions, including blood, saliva, urine, and sweat.