If a Firm Is Using Labour and Capital Such That

question 116

Multiple Choice

If a firm is using labour and capital such that the MP of labour is two times the MP of capital,and the price of labour is four times the price of capital,the firm should in order to minimize its costs of producing its output.

• A)decrease capital and increase labour
• B)not alter its present factor mix
• C)decrease both capital and labour
• D)increase capital and decrease labour
• E)increase both labour and capital

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Definitions:

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Stands for the United States Department of Agriculture, a federal agency responsible for developing and executing federal laws related to farming, forestry, rural economic development, and food.

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Beverages containing high amounts of sugar, which can contribute to various health issues like obesity and diabetes.

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