Suppose a Firm Is Using 1500 Units of Labour and 20

question 59

Multiple Choice

Suppose a firm is using 1500 units of labour and 20 units of capital to produce 100 tonnes of mineral ore.The price of labour is $50 per unit and the price of capital is $800 per unit.The MPL equals 60 and the MPK equals 1200.In this situation,

• A)the firm is minimizing its costs.
• B)the firm should increase the use of both inputs.
• C)the firm could lower its production costs by decreasing labour input and increasing capital input.
• D)the firm could lower its production costs by increasing labour input and decreasing capital input.
• E)the firm should decrease the use of both inputs.

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Definitions:

Self-report Surveys

A method of data collection where participants provide responses to specific questions on their own, often reflecting personal experiences, attitudes, or behaviors.

Dispositional Attribution

The process of attributing someone's behavior to their personality traits, character, or disposition.

Situational Attribution

The process of attributing behavior to external circumstances or situations rather than to internal personality traits or dispositions.

Empathy Gap

The inability to accurately predict one's own or others' emotional states and behaviors in different situations, usually underestimating the influence of emotions.