Assume That Skilled Labor Costs Twice as Much as Unskilled

question 62

Multiple Choice

Assume that skilled labor costs twice as much as unskilled labor, a profit-maximizing firm will

• A) always hire more skilled labor because it is more productive.
• B) always hire more unskilled labor because it is cheaper.
• C) hire until it equalizes the two marginal products.
• D) hire until the marginal product of unskilled labor is one-half that of skilled labor.
• E) hire until the marginal product of unskilled labor is two times that of skilled labor.

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Definitions:

Genevieve Lloyd

A philosopher known for her work in feminist philosophy, and particularly for her analysis on the philosophy of time and gender.

Descartes

A French philosopher, scientist, and mathematician, known as the father of modern philosophy, who famously declared, "I think, therefore I am."

Plato

An ancient Greek philosopher who founded the Academy in Athens and is a pivotal figure in the development of Western philosophy, especially in terms of metaphysics, epistemology, and ethics.

Rousseau

Jean-Jacques Rousseau, an 18th-century philosopher known for his influence on the Enlightenment in France and across Europe.