Suppose That Capital Costs $10 Per Unit and Labour Costs

question 108

Multiple Choice

Suppose that capital costs $10 per unit and labour costs $5 per unit.For a profit-maximizing firm operating at its optimal factor mix,if the marginal product of capital is 50,the marginal product of labour must be

• A)10.
• B)20.
• C)25.
• D)50.
• E)100.

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Definitions:

Five-step Model

A generic framework often used in problem-solving or project management that outlines five sequential stages: define, measure, analyze, improve, and control.

Agreement

A mutual understanding or arrangement, typically formalized into a contract, between two or more parties about what each will do for the other.

Stroking Technique

A method used in communication or therapy that involves positive reinforcement to encourage desired behavior.

Conflict

A situation where there is a clash of interests, values, actions, views, or directions between two or more parties.