A Profit-Maximizing Firm Will Increase Its Use of Capital and Decrease

question 107

Multiple Choice

A profit-maximizing firm will increase its use of capital and decrease its use of labour 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:

Interphase

A phase of the cell cycle where a cell spends most of its life, preparing for cell division by replicating its DNA and increasing in size.

G₀ Phase

A phase in the cell cycle where cells are in a state of quiescence (inactivity) and not actively dividing.

Spindle Fibers

Protein structures that form during cell division, aiding in the separation of chromosomes.

Metaphase

A stage of cell division where chromosomes align themselves at the equator of the cell before being separated into each of the two daughter cells.