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:

Whole Cultures

Whole cultures encompass the comprehensive way of life, including the arts, beliefs, customs, institutions, and all other products of human work and thought characteristic of a community or population.

Leader Schema

A mental model or framework that individuals use to understand and categorize leadership behaviors and traits.

Outgroup

A social group to which an individual does not identify or belong, often seen as distinct or oppositional to the ingroup.

Idiosyncrasy Credit

Hollander’s transactional theory, in which followers reward leaders for achieving group goals by allowing them to be relatively idiosyncratic.