A Profit- Maximizing Firm Will Increase Its Use of Capital

question 81

Multiple Choice

A profit- maximizing firm will increase its use of capital and decrease its use of labour when the

• A) average product of capital is higher than the average product of labour.
• B) total product of capital is higher than the total product of labour.
• C) marginal product of capital, per dollar spent on capital, is less than the marginal product of labour, per dollar spent on labour.
• D) marginal product of capital, per dollar spent on capital, is greater than the marginal product of labour, per dollar spent on labour.
• E) marginal product of capital is higher than the marginal product of labour.

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Definitions:

Testosterone Levels

The concentration of the hormone testosterone in the bloodstream, which plays a key role in male physical features and reproduction.

Estrogen Levels

The concentration of estrogen hormones in the body, which play key roles in the reproductive system of females and influence other bodily functions.

Ovulation

The release of an egg from one of a female's ovaries, an essential part of the menstrual cycle related to fertility.

Sex Hormones

Biologically active chemicals that regulate the development and functioning of reproductive organs and sex-specific characteristics in animals, including humans.