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.

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Definitions:

Valid Call

A valid call refers to invoking a function or method in programming with the correct number and type of arguments, adhering to its signature.

Char[][]

A two-dimensional array of characters in programming, often used to store matrix or grid-like data such as a tic-tac-toe board.

Dimensions

The measure of the size or extent of an object in one direction, often used in the context of arrays and matrices in programming.

Fixed Number

A constant value that does not change during the execution of a program, often used in mathematical calculations and algorithms.