Suppose That Capital Costs $10 Per Unit and Labour Costs

question 5

Multiple Choice

Suppose that capital costs $10 per unit and labour costs $5 per unit.For a profit- maximizing firm operating at its optimal factor mix,if the marginal product of capital is 50,the marginal product of labour must be

• A)10.
• B)50.
• C)25.
• D)100.
• E)20.

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Definitions:

Electronic Repair Revenues

Income generated from services related to fixing electronic devices.

Expenses

Costs incurred in the process of earning revenue, typically reflected in the income statement to calculate net income.

Financial Information

Data relating to the financial status, performance, and changes in financial position of an entity.

Revenues

The cumulative income derived from transactions involving goods or services tied to the main business functions.