For a Firm with Only Two Inputs,capital and Labour,the Condition

question 107

Multiple Choice

For a firm with only two inputs,capital and labour,the condition MPK/MPL = PK/PL guarantees that the firm is

• A)at its profit-maximizing output but is not necessarily minimizing its costs.
• B)minimizing its costs but is not necessarily maximizing its profits.
• C)technically efficient but not economically efficient.
• D)economically efficient but not technically efficient.
• E)at its profit-maximizing and cost-minimizing level of output.

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Definitions:

Circular Smooth Muscle

Smooth muscle fibers arranged in circular bands in various organs, such as the intestines, aiding in the constriction and movement of content.

Longitudinal Smooth Muscle

Muscle fibers arranged parallel to the long axis of an organ, contributing to its contraction and relaxation, found in the walls of internal organs.

Muscularis

Muscular coat of a hollow organ or tubular structure.

Peristalsis

The rhythmic contractions of smooth muscles in the gastrointestinal tract that facilitate the movement of food and waste.