Refer to the Given Data

question 336

Multiple Choice

Refer to the given data. If the prices of labor and capital are $9 and $15, respectively, the profit-maximizing firm will hire

• A)5 units of labor and 3 of capital.
• B)5 units of labor and 2 of capital.
• C)4 units of labor and 4 of capital.
• D)3 units of labor and 4 of capital.

---

Definitions:

Expected Price

The anticipated cost at which a commodity, asset, or service is thought to be bought or sold in the future.

Diversification

A risk management strategy that mixes a wide variety of investments within a portfolio to minimize the impact of any single asset's performance on overall portfolio returns.

Market Risk

The risk of losses in investments due to factors that affect the overall performance of the financial markets.

Rates of Return

The net gain or loss of an investment over a specified time period, expressed as a percentage of the investment’s initial cost.