Suppose That a Sneaker Company Produces Output Using Capital and Labor.Capital

question 80

Multiple Choice

Suppose that a sneaker company produces output using capital and labor.Capital costs $50 per unit and labor costs $5 per unit.If the firm is minimizing the costs of production when the marginal product of capital is 100 units, the marginal product of labor is:

• A)5 units.
• B)10 units.
• C)50 units.
• D)100 units.
• E)none of the above.

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Definitions:

Inactive Market

A market in which there are few transactions, leading to less liquidity and greater price fluctuations.

Going Public

The process by which a privately held company offers shares of stock to the public for the first time, often through an Initial Public Offering (IPO).

Primary Market

The financial market where new securities are issued and sold for the first time to investors.

Equity Issues

The sale of new shares by a company to investors in order to raise capital.