If the Marginal Physical Product of More Labor Is Twice

question 203

Multiple Choice

If the marginal physical product of more labor is twice as high as the marginal physical product of more machinery, a rational firm should

• 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.

Know the role and application of marketing metrics in evaluating business performance.

Understand the relevance of financial ratios to marketing decision-making.

Identify the processes and tools used for correcting and guiding marketing strategies.

Comprehend the methodology for assessing market potential and saturation.

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Definitions:

Free Trade

The absence of tariffs, quotas, and other restrictive regulations between countries to encourage unrestricted exchange of goods and services.

Remittances

Money sent by individuals working abroad to family members or others in their home country.

Transnational Hybrid

A business model combing elements from multiple cultural or legal frameworks, operating across national borders.

Private Sector

The part of the economy that is run by individuals and companies for profit rather than by the state.