Suppose That Capital Costs $6 Per Unit and Labour Costs

question 41

Multiple Choice

Suppose that capital costs $6 per unit and labour costs $3 per unit. If the marginal product of capital is 12 and the marginal product of labour is 6, the cost- minimizing firm should

• A) employ more capital and less labour.
• B) employ less of both capital and labour.
• C) employ more of both capital and labour.
• D) employ less capital and more labour.
• E) not change its current factor use.

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Definitions:

Major Organic Product

The primary chemical compound formed in the largest amount by a reaction involving organic molecules.

Stereochemistry

Stereochemistry deals with the spatial arrangement of atoms in molecules and how these arrangements affect the physical and chemical properties of the molecules.

Reaction Sequence

A series of chemical reactions carried out in a specific order to achieve the synthesis of a desired product.

(R)-2-Butyl Tosylate

A chiral organic compound where a butyl group is attached to a para-toluene sulfonate, used as an intermediate in organic synthesis.