For a Firm with Only Two Inputs,capital and Labour,the Condition

question 7

Multiple Choice

For a firm with only two inputs,capital and labour,the condition MP_K/MP_L = P_K/P_L guarantees that the firm is

• A)at its profit-maximizing output but is not necessarily minimizing its costs.
• B)minimizing its costs but is not necessarily maximizing its profits.
• C)technically efficient but not economically efficient.
• D)economically efficient but not technically efficient.
• E)at its profit-maximizing and cost-minimizing level of output.

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Definitions:

Office Supplies

Items and materials used in offices for conducting everyday business activities, such as pens, paper, staplers, and envelopes.

Delivery Dependability

A measure of the reliability of a supplier or a service in delivering products or services on time and in the correct condition.

Competing Companies

Businesses that are in direct rivalry with one another, offering similar products or services in the same market.

Warranties On Purchases

Guarantees provided by a seller to a buyer ensuring the quality and performance of a product for a certain period.