If a Firm Is Using Labour and Capital Such That

question 28

Multiple Choice

If a firm is using labour and capital such that the MP of labour is two times the MP of capital,and the price of labour is four times the price of capital,the firm should ________ in order to minimize its costs of producing its output.

• 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)not alter its present factor mix

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Definitions:

Functioning

Refers to the way in which someone or something operates or performs, often used in the context of an individual's ability to carry out daily activities or tasks.

Social Drift

The theory that suggests individuals with severe mental illnesses tend to move downward in social class compared to their family of origin.

Schizophrenia

An intense mental health issue characterized by irregularities in reasoning, observing, mood, verbal expression, self-recognition, and actions.

Social Class

A division of a society based on social and economic status.