Suppose That Capital Costs $10 Per Unit and Labour Costs

question 10

Multiple Choice

Suppose that capital costs $10 per unit and labour costs $4 per unit. If the marginal product of capital is 50 and the marginal product of labour is 50, the firm should in order to minimize its costs of producing its output.

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

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Definitions:

Layoff

The temporary or permanent termination of employment of an employee or group of employees for reasons not related to personal performance.

Verbal Communication

The use of spoken words to convey messages, thoughts, or information between individuals or groups.

Nonverbal Communication

The process of conveying meaning or information without using spoken words, through body language, facial expressions, gestures, and other cues.

Effective Dialogue

Is a process of meaningful conversation where all parties listen and contribute constructively, fostering understanding and actionable outcomes.