Suppose That the Marginal Revenue Product of Labor Is Currently

question 70

Multiple Choice

Suppose that the marginal revenue product of labor is currently 40 and the marginal revenue product of capital is 30. If both inputs have the same cost, the firm should:

• A) increase both labor and capital proportionally to meet the cost minimization condition.
• B) decrease both labor and capital proportionally to meet the cost minimization condition.
• C) increase labor and reduce capital to meet the cost minimization condition.
• D) increase capital and reduce labor to meet the cost minimization condition.

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Definitions:

Conflict Resolution

The process of resolving a dispute or disagreement between parties in a peaceful and effective manner.

Personal Goals

Individual objectives or aspirations that a person aims to achieve, which can be short-term or long-term and related to personal growth, career, health, or other aspects of life.

Goals

Targets or outcomes that an individual, group, or organization aims to achieve within a specified timeframe.

Avoiding (Withdrawal)

A communication strategy where one intentionally avoids or withdraws from interaction to evade conflict or uncomfortable situations.