Suppose That MP_L = 100 and MP_K = 80

question 58

Multiple Choice

Suppose that MP_L = 100 and MP_K = 80.If W = 25 and R = 20,then a firm:

• A) is producing its output at the lowest possible cost.
• B) could reduce costs by employing more labor and less capital.
• C) could reduce costs by employing more capital and less labor.
• D) could minimize costs by employing more of both inputs.

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Definitions:

Pie Charts

A circular statistical graphic divided into slices to illustrate numerical proportion, with the size of each slice proportional to the quantity it represents.

Bar Charts

A type of graphical display used to represent categorical data with rectangular bars of lengths proportional to the values they represent.

Nominal Data

Data classified into categories that cannot be ordered or ranked.

Proportional Slice

A proportional slice refers to a segment of a whole, such as in a pie chart, where each slice’s size represents its proportion in relation to the total.