Consider a Firm That Uses Only Labour and Capital

question 69

Multiple Choice

Consider a firm that uses only labour and capital.At the present use of labour and capital,the MP of labour is twice the MP of capital,and the price of labour is four times the price of capital.In order to minimize its costs,the firm should

• A)increase capital and decrease labour.
• B)decrease both capital and labour.
• C)decrease capital and increase labour.
• D)increase both labour and capital.
• E)maintain its present factor mix.

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Definitions:

Mini-Mental State Examination (MMSE)

A 30-point questionnaire test used to screen for cognitive impairment and to estimate the severity and progression of cognitive impairment.

Cognitive Impairment

A decline in mental functions such as memory, attention, and decision-making, which can interfere with daily activities and quality of life.

Delirium

An acute, often sudden, state of confusion and disorientation due to physical or mental illness.

Dementia

A broad category of brain diseases that cause a long-term and often gradual decrease in the ability to think and remember, significantly affecting daily functioning.