The Following Table Shows the Marginal Products of Capital (K)

question 46

Multiple Choice

The following table shows the marginal products of capital (K) and labour (L) for various methods for Firm ABC to produce 1000 toys per day. $$\begin{array}{l}\begin{array} { | l | l | l | } \hline \begin{array} { l } \text { Production } \\\text { Method }\end{array} & \text { MPK } & \text { MPL } \\\hline \text { A } & 50 & 4 \\\hline \text { B } & 45 & 8 \\\hline \text { C } & 40 & 12 \\\hline \text { D } & 35 & 16 \\\hline \text { E } & 30 & 20 \\\hline \text { F } & 25 & 24 \\\hline \text { G } & 20 & 28 \\\hline\end{array}\\\text { TABLE 8- } 2\end{array}$$
-Refer to Table 8- 2. Suppose the firm is employing production method G. How should this firm adjust its use of capital and labour in order to minimize costs?

• A) employ more capital and less labour
• B) employ more capital and labour
• C) employ less capital and more labour
• D) employ less capital and labour
• E) There is insufficient information to know.

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Definitions:

Somatic

Pertaining to or affecting the body, especially as distinct from the mind or psyche.

Neurotransmitters

Chemical substances released at the end of a nerve fiber by the arrival of a nerve impulse and, by diffusing across the synapse or junction, cause the transfer of the impulse to another nerve fiber, a muscle fiber, or some other structure.

Acetylcholine

One of the major neurotransmitters of the autonomic nervous system.

Norepinephrine

A neurotransmitter and hormone involved in the body's fight or flight response, affecting mood, focus, and alertness.