Suppose a Firm Is Using 1500 Units of Labour and 20

question 2

Multiple Choice

Suppose a firm is using 1500 units of labour and 20 units of capital to produce 100 tonnes of mineral ore.The price of labour is $40 per unit and the price of capital is $1000 per unit.The MP_L equals 24 and the MP_K equals 600.In this situation,

• A)the firm is minimizing its costs.
• B)the firm should increase the use of both inputs.
• C)the firm could lower its production costs by decreasing labour input and increasing capital input.
• D)the firm could lower its production costs by increasing labour input and decreasing capital input.
• E)the firm should decrease the use of both inputs.

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Definitions:

Attributional

Relating to the process of explaining the causes of behavior and events, including the attributions we make to understand others' actions.

Correspondent Inference

A theory in social psychology that explains how people infer others' personal characteristics from their behavior, assuming it corresponds to their personality.

Business Meeting

A gathering of individuals within an organization to discuss and make decisions on business-related matters.

Social Gathering

A social gathering is an event where people come together to interact, engage, or celebrate, often for communal or celebratory purposes.