Suppose the Marginal Rate of Technical Substitution for Labor with Capital

question 30

Multiple Choice

Suppose the marginal rate of technical substitution for labor with capital is 5,the marginal product of labor is 8,and the marginal product of capital is 4.Assuming the law of diminishing marginal product applies to both labor and capital,this firm:

• A) is minimizing the cost of producing its output.
• B) could reduce costs by using fewer workers and more capital.
• C) could reduce costs by using less capital and more workers.
• D) could reduce the cost of producing the output by reducing workers and capital by the same proportion.

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Unconstitutional

Being in violation of the principles or provisions of a country or state's constitution.

Granted Custody

The legal authorization given to an individual to care for and make decisions for another, often used in the context of child custody cases.

Do-it-yourself Forms

Refers to tasks or projects where individuals engage in producing or fixing things for themselves, typically in their own homes, without the direct aid of professionals or experts.

Homogamy

The practice of forming relationships or marriages between individuals with shared social characteristics, such as ethnicity, religion, age, or education level, often contributing to social cohesion.