Suppose That Capital Costs $100 Per Unit and Labour Costs

question 31

Multiple Choice

Suppose that capital costs $100 per unit and labour costs $40 per unit.If the marginal product of capital is 200 and the marginal product of labour is 60,a cost-minimizing firm should

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

Grasp the principle of diminishing marginal utility and its implications for consumption decisions.

Interpret utility tables and graphs to analyze consumer behavior.

Explain how changes in price and income influence consumer choices and budget constraints.

Analyze the impact of price changes on budget lines and consumption possibilities.

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Definitions:

Placenta

An organ connected to the uterine wall and to the fetus by the umbilical cord. The placenta serves as a relay station between mother and fetus for the exchange of nutrients and wastes.

Prenatal Activity

Activities or behaviors exhibited by a fetus in the womb, including movements and responses to different stimuli.

Zygote

The initial cell formed when a new organism is produced by sexual reproduction, resulting from the union of sperm and egg cells.

Second Trimester

The period of pregnancy from the 13th to the 26th week, often marked by a decrease in pregnancy symptoms and the growth of the fetus becoming more evident.