At the XYZ Co

question 55

Multiple Choice

At the XYZ Co.,a unit of capital costs 3 times as much as a unit of labor.If the isoquants are convex,and the firm does not change its input mix in the long run,we can conclude that

• A) MP_K = 3 ∗ MP_L.
• B) the firm will not hire any capital.
• C) the firm will hire 3 times as much labor as capital.
• D) the firm will hire 3 times as much capital as labor.

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Maslow Hierarchy

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