If the Product Derived from the Last Dollar Spent on Labor

question 187

Multiple Choice

If the product derived from the last dollar spent on labor is less than the product derived from the last dollar spent on capital, then the firm

• A) is minimizing costs.
• B) should use more labor and less capital to minimize costs.
• C) should use less labor and more capital to minimize costs.
• D) should increase the price paid to labor and decrease the price paid to capital to minimize costs.

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Definitions:

Cognitive Appraisal

A mental process wherein an individual evaluates and interprets an event or situation, influencing their emotional response.

Genetically Influenced

Traits or behaviors that are affected by genes inherited from one's parents.

Unconscious Conflicts

Deep-seated inner dilemmas that reside outside conscious awareness, often originating from childhood experiences and influencing behavior and emotions.

Self-Esteem

The relative balance of positive and negative judgments about oneself.