At a Given Output Level, If the Cost of Capital

question 67

Multiple Choice

At a given output level, if the cost of capital is $50 per hour, the wage paid to employees is $30 per hour, the marginal product of capital is 120 units per hour, and the marginal product of labor is 60 units per hour, the firm is ________ .

• A)on a short- run average total cost curve, but not the long- run average cost curve
• B)on the long- run average total cost curve, but not a short- run average cost curve
• C)on neither a short- run average total cost curve nor the long- run average cost curve
• D)on both a short- run average total cost curve and the long- run average cost curve

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Definitions:

Collaborative Forecast

A forecast made using input from multiple stakeholders, such as suppliers, customers, and partners, to improve accuracy and planning.

Supply Chains

The entire network of entities involved, directly or indirectly, in serving a customer with a product or service.

Responsive

The ability to quickly and accurately react to changes or inputs, often used in the context of web design or customer service.

Efficient

Achieving maximum productivity with minimum wasted effort or expense, often related to the optimal use of resources.