Suppose That Capital Costs $10 Per Unit and Labour Costs

question 23

Multiple Choice

Suppose that capital costs $10 per unit and labour costs $4 per unit.If the marginal product of capital is 50 and the marginal product of labour is 50,the firm should in order to minimize its costs of producing its output.

• A)employ more capital and less labour
• B)not change its current factor use
• C)employ less capital and labour
• D)employ less capital and more labour
• E)employ more capital and labour

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Definitions:

Bureaus of Vital Statistics

Government agencies that record and maintain essential documents, such as birth, death, marriage, and divorce records.

Banks

Financial institutions licensed to receive deposits and make loans, and they offer various other financial services.

Bureaus of Vital Statistics

Government agencies tasked with recording and maintaining essential records of births, deaths, marriages, and divorces.

Banks

Financial institutions licensed to receive deposits, offer loans, and provide various financial services to individuals and businesses.