The Table Gives Marginal Product Data for Resources a and B

question 344

Multiple Choice

The table gives marginal product data for resources a and b. The output of these independent resources sells in a purely competitive market at $1 per unit. Assuming the prices of resources a and b are $5 and $8 respectively, what is the profit-maximizing combination of resources?

• A)7 of a and 7 of b
• B)6 of a and 4 of b
• C)4 of a and 4 of b
• D)5 of a and 7 of b

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Definitions:

High School Education

A secondary level of formal schooling that follows primary education, typically including grades 9 or 10 through 12, and culminating in a diploma.

Proportion

A statistical measure that reflects the fraction or percentage of the total number of cases that fall within a particular category.

Statistic

A characteristic or measure obtained from a sample of data to estimate a population parameter.

Sampling Distribution

The likelihood distribution of a statistic, achieved by drawing numerous samples from a certain population.