The Following Table Shows the Marginal Products of Capital (K)

question 46

Multiple Choice

The following table shows the marginal products of capital (K) and labour (L) for various methods for Firm ABC to produce 1000 toys per day. $$\begin{array}{l}\begin{array} { | l | l | l | } \hline \begin{array} { l } \text { Production } \\\text { Method }\end{array} & \text { MPK } & \text { MPL } \\\hline \text { A } & 50 & 4 \\\hline \text { B } & 45 & 8 \\\hline \text { C } & 40 & 12 \\\hline \text { D } & 35 & 16 \\\hline \text { E } & 30 & 20 \\\hline \text { F } & 25 & 24 \\\hline \text { G } & 20 & 28 \\\hline\end{array}\\\text { TABLE 8- } 2\end{array}$$
-Refer to Table 8- 2. Suppose the firm is employing production method G. How should this firm adjust its use of capital and labour in order to minimize costs?

• A) employ more capital and less labour
• B) employ more capital and labour
• C) employ less capital and more labour
• D) employ less capital and labour
• E) There is insufficient information to know.

Identify and explain the fundamental attribution error.

Understand self-serving bias and its impact on personal perception.

Comprehend the concepts of actor-observer bias and defensive attribution.

Recognize the role of similarity and attraction in interpersonal relationships.

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Definitions:

Dependent Variable

A variable in an experiment or study whose changes depend on the manipulation of the independent variable.

Interaction Effect

A situation in statistical analysis where the effect of one independent variable on the dependent variable is different at different levels of another independent variable.

Main Effect

The effect of an independent variable on a dependent variable, isolated from other variables in an experimental study.

Simple Effect

The effect of one independent variable at a particular level of another independent variable in a factorial design.