Assume the Backwoods Shoe Company Hires Three Inputs: Labor (L)

question 184

Multiple Choice

Assume the Backwoods Shoe Company hires three inputs: labor (L) , capital (K) , and land (A) to produce shoes (X) . Which of the following conditions must be met so that the firm is using the optimal, or least costly, combination of inputs?

• A) MP_L = MP_K = MP_A
• B) P_L = P_K = P_A
• C) MP_L/P_L = MP_K/P_K = MP_A/P_A
• D) MP_L = MP_K = MP_A = 1/P_X

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Definitions:

Psychodynamic Approach

Focuses on understanding human behavior by analyzing the inner conflicts that arise from childhood experiences and the unconscious mind.

Dialectical Behavior Therapy

A type of cognitive-behavioral therapy that focuses on teaching skills to manage emotional distress and improve interpersonal relationships, often used for treating borderline personality disorder.

Dr. Marsha Linehan

A psychologist who created Dialectical Behavior Therapy (DBT), primarily aimed at treating borderline personality disorder and other conditions.

Cognitive-behavioral Therapy

A psychotherapeutic approach that addresses dysfunctional emotions and behaviors through goal-oriented, systematic procedures.