Suppose a Firm Employs Two Kinds of Inputs,capital at $100

question 73

Multiple Choice

Suppose a firm employs two kinds of inputs,capital at $100 per unit,and labour at $25 per unit.If the marginal product of capital is 50,then the firm should ________ in order to minimize its production costs.

• A)employ more capital and less labour
• B)employ more labour and less capital
• C)employ more labour and more capital
• D)not change its current factor use
• E)There is insufficient information to make a recommendation.

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Definitions:

Brand

A name, design, symbol, or any other feature that identifies one seller's goods or service as distinct from those of other sellers.

Tactical Greening

A type of environmental marketing activity that involves implementing limited change within a single area of the organization.

Environmental Issues

Concerns related to the impact of human activity on the natural environment, including pollution, climate change, and biodiversity loss.

Functional Area

Specific departments within a business, such as marketing, finance, or human resources, each focusing on particular aspects of the company’s operations.