Refer to the Following

question 81

Multiple Choice

Refer to the following:

A producer is hiring 20 units of labor and 6 units of capital (bundle A) . The price of labor is $10, the price of capital is $2, and at A, the marginal products of labor and capital are both equal to 20.

-Beginning at A, if the producer increases labor by one unit and decreases capital by 1 unit, then

• A) cost remains constant and output increases by 20 units.
• B) cost remains constant and output decreases by 20 units.
• C) output remains constant and cost increases by $8.
• D) output remains constant and cost decreases by $8.
• E) both cost and output remain constant.

---

Definitions:

Environmental Factors

Elements outside the individual, such as social, cultural, and physical environments, that can influence one's behavior and development.

Personality Traits

Enduring patterns of thought, feeling, and behavior that characterize an individual and differentiate them from others.

Nonshared Environment

A term used in psychology that refers to the unique set of environmental factors and experiences that influence an individual's development, distinct from those shared with family members.

Biology

The scientific study of life and living organisms, including their structure, function, growth, evolution, and distribution.