Suppose MPL = 0

question 89

Multiple Choice

Suppose MPL = 0.5 ∗ (q/L) and MPₖ = 0.5 ∗ (q/K) .In the long run,the firm will hire equal amounts of capital and labor

• A) all of the time.
• B) only when w = r.
• C) only when w = 0.5 ∗ r.
• D) at no point in time.

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Definitions:

Child and Dependent Care Expenses

Expenses related to the care of children or other dependents that can be deducted from taxable income.

AGI

This represents the total income a person has, including wages, salaries, and other sources, minus adjustments, used as a basis for calculating tax owed.

Qualifying Children

Qualifying Children are the dependents of a taxpayer who meet specific IRS criteria for the taxpayer to be eligible for certain tax credits and deductions.

EIC

Earned Income Credit, a refundable tax credit for low- to moderate-income workers, especially those with children.