For a Firm with Only Two Inputs, Capital and Labour

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

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Definitions:

Dopamine D-2 Receptors

Specific protein sites in the brain that dopamine binds to, influencing movement, motivation, and pleasure.

Antipsychotic Drugs

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Serotonin

A neurotransmitter that plays a key role in modulating mood, anxiety, and happiness.

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A rare but serious condition involving a severe reduction in the number of granulocytes, a type of white blood cell, leading to increased vulnerability to infections.