Suppose a Firm Employs Two Kinds of Inputs,capital at $100

question 73

Multiple Choice

Suppose a firm employs two kinds of inputs,capital at $100 per unit,and labour at $25 per unit.If the marginal product of capital is 50,then the firm should ________ in order to minimize its production costs.

• A)employ more capital and less labour
• B)employ more labour and less capital
• C)employ more labour and more capital
• D)not change its current factor use
• E)There is insufficient information to make a recommendation.

Recognize short-run and long-run patterns in stock behavior.

Apprehend how public and private information impacts stock prices according to the Efficient Market Hypothesis.

Understand the concept of abnormal return and its significance.

Grasp the practical implications of EMH on investment strategies.

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