If the Marginal Physical Product of More Labor Is Twice

question 203

Multiple Choice

If the marginal physical product of more labor is twice as high as the marginal physical product of more machinery, a rational firm should

• A)reduce the labor used and increase the machinery used if labor costs half as much as machinery.
• B)reduce the labor used and increase the machinery used if labor and machinery cost the same amount.
• C)reduce the labor used and increase the machinery used only if labor costs more than twice as much as machinery.
• D)reduce the labor used and increase the machinery used only if labor costs exactly twice as much as machinery.

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Definitions:

Industrial Unionism

A labor organization principle that seeks to unite all workers in a particular industry, regardless of specific trades or professions, into a single union.

Public Sector Workers

Employees who work for government entities at the federal, state, or local level, including education, emergency services, and healthcare.

Unionization

The process of forming or joining a union, where workers unite to negotiate with employers over wages, hours, benefits, and working conditions.

Craft Workers

Employees who possess specialized skills in a particular trade or craft, often requiring specific training and apprenticeships, such as carpenters, electricians, or plumbers.