If a Firm Fired One Worker and Lost 12 Units

question 124

Multiple Choice

If a firm fired one worker and lost 12 units of production and decides to add one more unit of capital, then to remain on the same isoquant what must be TRUE?

• A)The MPK of the next unit of capital added equals 12.
• B)The firm must force the other workers to work more.
• C)The firm will experience a decline in output.
• D)The marginal rate of technical substitution is greater than 12.

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Definitions:

Retailers

Retailers are businesses or individuals that purchase goods from manufacturers or wholesalers and sell them directly to consumers.

Promotional Activities

Marketing efforts intended to increase awareness or sales of a product or service, often through discounts or advertising.

Profitable

A state where a business or investment generates more revenue than the expenses incurred, leading to a financial gain.

Retailers

Businesses that sell goods directly to consumers, acting as the final link in the supply chain.