Firm X Produces Output $x$ And Firm Y Produces Outputyusing Capital $K$

question 21

Multiple Choice

Firm X produces output $x$ and Firm Y produces outputyusing capital, $K$ , and labor, $L$ , as inputs. Firm X has marginal rate of technical substitution $M R T S ^ { x } { } _ { K } L = K _ { x } / L _ { x _ { 0 } }$ , while firm $Y$ has marginal rate of technical substitution $M R T S _ { K , L } = 9 K _ { y } / L _ { y }$ . Which of the following allocations satisfies input efficiency?

• A) Firm X has 5 units of \(K\) and 3 units of \(L\), and Firm Y has 3 units of \(K\) and 1 unit of \(L\).
• B) Firm X has 5 units of \(K\) and 5 units of \(L\), and Firm Y has 1 unit of \(K\) and 9 units of \(L\).
• C) Firm X has 9 units of \(K\) and 1 units of \(L\), and Firm Y has 5 units of \(K\) and 5 units of \(L\).
• D) Firm X has 5 units of \(K\) and 5 units of \(L\), and Firm Y has 1 unit of \(K\) and 3 units of \(L\).

---

Definitions:

Management Programs

Management programs are structured plans or courses designed to improve the skills of managers in areas such as leadership, decision-making, and organizational effectiveness.

Direct Behaviors

Actions that are straightforward and unambiguous, often involving clear communication and immediate performance of tasks or directives.

Training Program

A structured course of activities designed to develop skills, knowledge, or behaviors.

Performance Determinant

A factor that significantly influences the outcome or level of performance in an activity or process.