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.

---

Definitions:

Online Reverse Auctions

Digital marketplaces where suppliers bid to sell their goods or services to a buyer, with prices typically decreasing over time, often used to enhance competitiveness and reduce costs.

Competitive Supply Market

Refers to a market environment where multiple suppliers are competing to offer products or services, usually driving down prices and increasing quality.

Switch Suppliers

The process of changing from one supplier to another to improve service, reduce costs, or gain other advantages.

Pareto Analysis

A statistical technique in decision-making used for the selection of a limited number of tasks that produce significant overall effect. It uses the principle that 80% of results come from 20% of the actions.