A Cost-Minimizing Firm Will Increase Its Use of Labour and Decrease

question 80

Multiple Choice

A cost-minimizing firm will increase its use of labour and decrease its use of capital when the

• A)marginal product of capital is higher than the marginal product of labour.
• B)marginal product of capital,per dollar spent on capital,is greater than the marginal product of labour,per dollar spent on labour.
• C)average product of capital is higher than the average product of labour.
• D)total product of capital is higher than the total product of labour.
• E)marginal product of capital,per dollar spent on capital,is less than the marginal product of labour,per dollar spent on labour.

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Definitions:

Positive Emotions

Feelings that are generally beneficial for well-being and happiness, such as joy, gratitude, and love.

Negative Reinforcement

A process in behavior modification where the removal of an undesirable outcome strengthens a behavior.

Punishment

A process in behavior modification that involves presenting an adverse event or outcome in order to decrease the likelihood of a behavior recurring.

Biologically Primed

Innately equipped or predisposed by biology to learn certain behaviors or develop certain physical or psychological traits.