Firm X Produces Output and Firm Y Produces Output

question 13

Multiple Choice

Firm X produces output and Firm Y produces output using capital,K,and labor,L,as inputs.Firm X has marginal rate of technical substitution MRTS^x_K,L = K_x/L_x,while firm Y has marginal rate of technical substitution MRTS^y_K,L = 9K_y/L_y. Which of the following allocations satisfies input efficiency?

• A) Firm X has 5 units of K and 3 units of L, and Firm Y has 3 units of K and 1 unit of L.
• B) Firm X has 5 units of K and 5 units of L, and Firm Y has 1 unit of K and 9 units of L.
• C) Firm X has 9 units of K and 1 units of L, and Firm Y has 5 units of K and 5 units of L.
• D) Firm X has 5 units of K and 5 units of L, and Firm Y has 1 unit of K and 3 units of L.

---

Definitions:

Adolescence-Limited Offender

denotes individuals who engage in criminal or antisocial behavior primarily during their teenage years, typically desisting as they enter adulthood.

Drug Abuse

The misuse of drugs or substances in a manner that deviates from the prescribed medical guidelines or societal norms, often leading to addiction and adverse health effects.

Identity Crisis

A time marked by ambiguity and bewilderment, where someone's self-identity feels unstable, usually because of modifications in their anticipated societal positions or objectives.

Identity Achievement

A stage in adolescent development where individuals have explored various options and commitments and have established a coherent sense of identity.