By Expressing the Cost- Minimizing Condition as MPK/MPL = PK/PL,we

question 88

Multiple Choice

By expressing the cost- minimizing condition as MPK/MPL = PK/PL,we are able to see

• A)that the firm is producing at a lower cost if the left- hand side of the equation is greater than the right- hand side.
• B)that the capital- labour ratio is fixed.
• C)how the firm determines its profit- maximizing output.
• D)that the ratio of factor prices is constant over time.
• E)how the firm can adjust the marginal products of the factors of production to the prices of the factors given by the market.

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Definitions:

Primary Control

Efforts to change the external world to fit one's needs or desires, often through direct action.

Secondary Control

A coping mechanism that involves adjusting one's own attitudes, goals, or emotions to deal with uncontrollable situations.

Japanese Proverb

A traditional saying in Japanese culture that expresses wisdom, truth, or a moral lesson.

Secondary Control

A coping mechanism that involves adjusting one's own attitudes, goals, or emotions to deal with situations that are beyond one's control.