Suppose a Firm Is Using 1500 Units of Labour and 20

question 78

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 $20 per unit and the price of capital is $1000 per unit.The MP_L equals 25 and the MP_K equals 750.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:

Off Resonance Decoupled

A technique in NMR spectroscopy used to simplify spectral interpretation by selectively decoupling the spins of specific nuclei from their scalar coupling with others.

Triplet

An atomic or molecular state characterized by three possible values of its magnetic quantum number, indicating a level of spin degeneracy.

IR Data

Information obtained from infrared spectroscopy that shows how a molecule absorbs infrared light, used to determine molecular structure.

Aldehyde

Organic compounds characterized by a carbonyl group (C=O) bonded to at least one hydrogen atom, known for their reactivity and widespread use in organic synthesis.