The Following Table Shows the Marginal Products of Capital (K)and

question 75

Multiple Choice

The following table shows the marginal products of capital (K) and labour (L) for various methods for Firm ABC to produce 1000 toys per day. $$\begin{array} { | c | c | c | } \hline \begin{array} { c } \text { Production } \\\text { Method }\end{array} & \text { MPK } _ { K } & \text { MP}_{L } \\\hline \text { A } & 50 & 4 \\\hline \text { B } & 45 & 8 \\\hline \text { C } & 40 & 12 \\\hline \text { D } & 35 & 16 \\\hline \text { E } & 30 & 20 \\\hline \text { F } & 25 & 24 \\\hline \text { G } & 20 & 28 \\\hline\end{array}$$ TABLE 8- 2
-Refer to Table 8- 2.Suppose capital costs $6 per unit and labour costs $4 per unit and the firm is employing production method A.How should this firm adjust its use of capital and labour to minimize costs?

• A)employ less capital and more labour
• B)employ more capital and less labour
• C)employ less capital and less labour
• D)employ more capital and more labour
• E)There is insufficient information to know.

---

Definitions:

Conflict

A situation in which there are opposing ideas, interests, or needs leading to a disagreement.

Manufacturers

Companies or individuals that produce finished goods from raw materials through the use of machinery and labor.

Consumers

Individuals or groups who purchase goods and services for personal use or consumption.

M-commerce

Describes the conducting of commercial transactions using mobile devices, emphasizing the growing trend of using smartphones for shopping and payments.