A Firm Uses Labor and Capital

question 169

Multiple Choice

A firm uses labor and capital. To tell if the firm is technologically efficient, you

• A) do not need to know the cost of labor or the cost of capital.
• B) need to know the cost of capital but not the cost of labor.
• C) need to know the cost of labor and the cost of capital.
• D) need to know the cost of labor but not the cost of capital.

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Definitions:

Divergent Thinking

A way of solving problems characterized by creative and non-linear approaches, often leading to multiple possible solutions.

Abstract Thinking

The ability to think about objects, principles, and ideas that are not physically present; involves higher-order reasoning and complex thought processes.

Convergent Thinking

A cognitive process in which a person attempts to find a single, correct solution to a problem.

Minority Characteristics

Features or attributes that distinguish minority groups from the majority, often relating to race, ethnicity, culture, or social status.