Suppose a Firm Is Using 1500 Units of Labour and 20

question 9

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 $40 per unit and the price of capital is $1000 per unit.The MPL equals 25 and the MPK equals 750.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:

Rewards

Incentives or benefits given to individuals or groups to recognize and encourage their achievements or performance.

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A state of contentment or happiness achieved when needs, desires, or expectations are fulfilled.

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Refers to the phenomenon where one person's emotional state, whether positive or negative, is transferred to others around them, influencing their feelings and behaviors.

Emotional Intelligence

The ability to recognize, understand, manage, and use one’s own and others’ emotions effectively for better decision making and interpersonal relationships.