Suppose a Firm Employs Two Inputs,X and Y,and That at Their

question 114

Multiple Choice

Suppose a firm employs two inputs,X and Y,and that at their current levels of use MPX/PX > MPY/PY.To minimize the cost of production,the firm should hire

• A)more input X only if its price decreases.
• B)more input Y and less input X.
• C)more input X and less input Y.
• D)more input X only if its price increases.
• E)more input Y only if its price falls.

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Definitions:

HMS Beagle

A British Royal Navy ship on which Charles Darwin made his famous voyage, providing key observations that led to the development of his theory of natural selection.

Darwin

Charles Darwin, a 19th-century naturalist best known for his contributions to the theory of evolution through natural selection.

Galápagos Island Finches

A group of about 15 species of finches from the Galápagos Islands, known for their varied beak shapes and sizes, which inspired Charles Darwin's theory of natural selection.

Three-Domain System

A classification system in biology that divides cellular life forms into three domains: Archaea, Bacteria, and Eukarya.