A Firm Is Operating Such That the Marginal Product of Labor

question 193

Multiple Choice

A firm is operating such that the marginal product of labor is 10 and the marginal product of capital is 20. The firm is minimizing its costs only if

• A) the wage is half the rental rate.
• B) the rental rate is half the wage.
• C) since capital is more productive than labor, the firm must be minimizing cost.
• D) Given this information the firm can't be minimizing cost under any circumstances.

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Definitions:

Assigned Rights

Assigned rights involve the transfer of rights or duties under a contract from one party to another, not transferring the entire contract but specific benefits.

Contractual Obligations

Duties that are legally required to be fulfilled under the terms of a contract.

Assignment Protocol

Assignment Protocol is a set of rules or procedures designated for assigning tasks, responsibilities, or resources in an organized manner.

Delegation

The act of assigning responsibility or authority from one person to another, often seen in management or organizational contexts.