If the Marginal Rate of Technical Substitution for a Cost

question 117

Multiple Choice

If the marginal rate of technical substitution for a cost minimizing firm is 10,and the wage rate for labor is $5,what is the rental rate for capital in dollars?

• A) .5
• B) 1
• C) 2
• D) 10

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Definitions:

Organizational Design

The process of structuring an organization in a way that facilitates achieving its goals effectively and efficiently.

Formal Authority

The right bestowed upon an individual or unit to make decisions, command obedience, and enforce rules within an organization's hierarchy.

Situational Contingencies

External factors or circumstances that influence the outcome of a decision or action and must be considered in planning and execution.

Organizational Design

The process of structuring an organization’s roles, responsibilities, and systems to effectively manage and utilize resources to achieve business objectives.