If the MPP of Labor Is 60 and the Price

question 41

Multiple Choice

If the MPP of labor is 60 and the price of labor per period is $20, the MPP of machinery is 75 and the price of the machinery per period is $25, in order to achieve optimal input proportions the firm should use

• A) more labor and less machinery.
• B) more machinery and less labor.
• C) more labor with the same amount of machinery.
• D) the current combination.

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Definitions:

Identical Probability Distributions

Probability distributions that are exactly the same in terms of their statistical properties such as mean, variance, and skewness.

Single Population

Refers to a group or set of entities sharing one or more characteristics, from which data can be collected and analyzed as a unified whole.

Sign Test

A nonparametric test used to determine if there is a significant difference between paired observations.

Matched-Pairs Sample

An experimental design technique in which subjects are paired based on certain criteria, and each pair is treated differently to compare the effects.