If Skilled Labor Is Three Times the Cost of Unskilled

question 60

Multiple Choice

If skilled labor is three times the cost of unskilled labor, a profit-maximizing firm will vary the quantity of each type of labor until the

• A) marginal product of each is the same.
• B) amount of unskilled labor used is three times the quantity of skilled labor used.
• C) amount of unskilled labor used is one-third the quantity of skilled labor used.
• D) marginal product of unskilled labor is one-third that of skilled labor.

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Definitions:

Unconscious Environment

Influences from one's surroundings that affect behavior and decision-making processes without one's explicit awareness.

Social Environment

The immediate physical and social setting in which people live or in which something happens or develops.

Müller-Lyer Visual Illusion

An optical illusion that involves lines of equal length appearing to be different lengths due to the orientation of arrow-like figures at their ends.

Carpentry

The craft or activity involving the cutting, shaping, and installation of building materials during the construction of buildings, ships, timber bridges, and furniture.