If the Marginal Physical Product of More Labor Is Twice

question 124

Multiple Choice

If the marginal physical product of more labor is twice as high as the marginal physical product of more machinery, a profit-maximizing firm will

• A) reduce the labor used and increase the machinery used if labor costs half as much as machinery.
• B) reduce the labor used and increase the machinery used if labor and machinery cost the same amount.
• C) reduce the labor used and increase the machinery used only if labor costs more than twice as much as machinery.
• D) reduce the labor used and increase the machinery used only if labor costs exactly twice as much as machinery.

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Definitions:

Self-Employed Individuals

Persons who operate their own businesses or work as freelancers, responsible for their taxes and often not entitled to employee benefits.

Title VII

A section of the Civil Rights Act of 1964 that makes it illegal to discriminate in employment on the grounds of race, color, religion, gender, or ethnic background.

Civil Rights Act

A significant law in the United States that prohibited discrimination on the basis of race, color, religion, sex, or national origin.

Bona Fide Occupational Qualification

A legal defense used by employers to justify discrimination based on religion, age, sex, etc., if it is reasonably necessary to the normal operation of that particular business.