Suppose a Firm Is Employing Labour (L) and Capital (K)

question 49

Multiple Choice

Suppose a firm is employing labour (L) and capital (K) such that MPK/MPL = PK/PL. If the price of labour rises, the cost- minimizing firm should

• A) do nothing.
• B) employ more capital and less labour because MPK/MPL < PK/PL.
• C) employ more labour and less capital because MPK/MPL < PK/PL
• D) employ more labour and less capital because MPK/MPL > PK/PL.
• E) employ more capital and less labour because MPK/MPL > PK/PL

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Definitions:

Gottman's Description

A conceptual framework or characterization developed by psychologist John Gottman, often related to his research on marital stability and relationship analysis.

Contempt

This is a feeling of disdain or scorn for someone or something, often viewed as morally inferior or not worthy of respect.

Defensiveness

A psychological reaction characterized by the denial of facts, reality, or personal accountability, often in order to protect the ego.

Stonewalling

A communication strategy in which one party refuses to engage or respond, effectively shutting down dialogue.