A Firm Currently Employs 80 Units of Labor and 50

question 69

Multiple Choice

A firm currently employs 80 units of labor and 50 units of capital equipment to produce 3,000 hamster cages. Given the current input levels utilized, the marginal product of labor is 40 and the marginal product of capital is 10. If we assume that labor costs $20 per unit and capital costs $10 per unit,

• A) the firm is using the appropriate mix of labor and capital to minimize its costs.
• B) the firm could lower its costs for the same level of output by using more labor and less capital.
• C) the firm could lower its costs for the same level of output by using more capital and less labor.
• D) the current MRP of capital exceeds the current MRP of labor.

---

Definitions:

Strategic Plan

A systematic, thorough, and aligned document that outlines from start to finish what a brand, individual, or organization wants to accomplish to address a problem or opportunity or to explore potential new possibilities through experimentation.

Psychographics

The study and classification of people according to their attitudes, aspirations, and other psychological criteria, especially in market research.

Designated Hashtag

A specific hashtag created and used by a brand or campaign to unify and track conversations and content related to them on social media.

Tactics

Specific actions or strategies planned to achieve a certain goal.