Consider a Firm That Uses Only Labour and Capital as Inputs.At

question 9

Multiple Choice

Consider a firm that uses only labour and capital as inputs.At the present use of labour and capital,the MP of labour is four times the MP of capital,and the price of labour is twice the price of capital.In order to minimize its costs,the firm should

• A)substitute capital for labour until their marginal products are equal.
• B)decrease both capital and labour.
• C)decrease capital and increase labour.
• D)increase both labour and capital.
• E)stay at its present factor mix.

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Legal Fees

Costs associated with legal services provided by attorneys or law firms to individuals or organizations.

Landscaping

Landscaping involves modifying and beautifying the visible features of an area of land, including flora, terrain shape, and other aesthetic considerations.

Depletion Expense

An accounting method used to allocate the cost of extracting natural resources from the Earth over the period of their extraction.

Mining Property

Refers to land or rights to land granted for the exploration and extraction of minerals, oils, or other natural resources.