Suppose That a Firm's Production Function of Output $Q$ Is a Function of Only Two Inputs, Labor (L) and a Function

question 60

Multiple Choice

Suppose that a firm's production function of output $Q$ is a function of only two inputs, labor (L) and capital $( K )$ and can be written $Q = 25 L K$ with marginal products $M P _ { L } = 25 K$ and $M P _ { K } =$ 25L. Let the wage rate for labor be $w = 1$ and the rental rate of capital be $r = 1$ . If the firm produces 100 units of output, how many units of labor will it use?

• A)1
• B)2
• C)3
• D)4

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Definitions:

Cultural Assimilation

The process by which individuals or groups from differing cultural backgrounds come to adopt the dominant culture's norms and values.

Mismanagement

The action or practice of managing an organization or activity poorly, leading to negative outcomes.

Organizational Culture

Organizational Culture is the collective values, beliefs, and behaviors that shape the social and psychological environment of a business, influencing how employees interact and work.

Horizontal Integration

The merger or acquisition of rivals.