If a Firm Fired One Worker and Lost 12 Units

question 45

Multiple Choice

If a firm fired one worker and lost 12 units of production and decides to add one more unit of capital,then to remain on the same isoquant what must be true?

• A) The MPₖ of the next unit of capital added equals 12.
• B) The firm must force the other workers to work more.
• C) The firm will experience a decline in output.
• D) The marginal rate of technical substitution is greater than 12.

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Definitions:

Convergence

In psychology, it refers to the coming together of sensory information or ideas to form a new, unified perspective; in physics, it's the inward bending of the eyes toward each other to focus on a close object.

Cue To Distance

A sensory signal or perception that helps in estimating the distance between the observer and a target object.

Eye Muscles

Muscles surrounding the eyes that enable movements such as looking up, down, and side to side.

Motion Parallax

a depth cue that involves the relative movement of objects as the observer moves, giving clues about their distance.