What Is Not True When Thinking of the Firm's Objective

question 1

Multiple Choice

What is not true when thinking of the firm's objective as a cost-minimization problem rather than as a profit-maximization problem?

• A)The slope at any point on any isoquant reveals the marginal rate of technical substitution.
• B)The firm chooses labor and capital to minimize its costs.
• C)The firm chooses a particular level of output to produce.
• D)The price of the output good never enters the decision as to how much labor or capital to employ.
• E)The firm will choose labor and capital inputs so that the marginal productivity of labor relative to the marginal productivity of capital equals the price of labor relative to the price of capital.

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Definitions:

Role Interrelatedness

The interconnectedness and dependency of different roles within a system or organization, contributing to its overall function.

Competitive Skills

Abilities and knowledge that enable an individual or organization to outperform competitors in a specific area or market.

Adjourning Stage

The final phase of group development where the team completes its task and dissolves, often accompanied by feelings of closure and accomplishment.

Group Development

A progression in which a team undergoes transformation, generally advancing through phases such as forming, storming, norming, performing, and adjourning.