Consider a Firm That Uses Only Labour and Capital

question 69

Multiple Choice

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

• A)increase capital and decrease labour.
• B)decrease both capital and labour.
• C)decrease capital and increase labour.
• D)increase both labour and capital.
• E)maintain its present factor mix.

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Definitions:

Corporate Culture

The shared values, attitudes, standards, and beliefs that characterize members of an organization and define its nature.

Organizational Culture

Organizational culture encompasses the values, beliefs, and behaviors that shape how an organization's members interact and handle outside business transactions.

Enterprising Cultures

Organizational cultures that emphasize innovation, risk-taking, and proactive growth strategies.

Collaboration

The action of working with others to produce or create something, typically implying a joint effort towards a common goal.