A Firm Is Using 20 Units of Labor and 30

question 77

Short Answer

A firm is using 20 units of labor and 30 units of capital to produce 4,000 units of output. At this combination the marginal product of labor is 50 and the marginal product of capital is 40. The price of labor is $30 and the price of capital is $20.
a. The MP per dollar of labor is _________ and the MP per dollar of capital is _________.
b. The firm can increase capital by one unit and decrease labor by _________ units while keeping cost constant. This will ____________ output by _________.
c. To maximize output at the given cost the firm will increase ____________ and decrease ____________ until the MRTS equals _________.

Understand the concept and processes involved in concerted evolution.

Gain skills in constructing and interpreting similarity matrices based on genetic sequences.

Learn about the role of natural selection in the evolution of gene functions and sequences.

Understand the concept of gene families and the evolution of gene duplications.

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Definitions:

Indirect Approach

A communication strategy that involves conveying a message in a roundabout way, rather than stating it directly, often used to soften the impact.

Hypothesis

A proposed explanation made on the basis of limited evidence as a starting point for further investigation.

Speculation

The act of forming theories or conjectures without firm evidence, often about financial markets or future events.

Cause

A factor or event that brings about an effect or a change in a situation.