A Firm Combines Two Resources, a and B, to Produce

question 180

Multiple Choice

A firm combines two resources, A and B, to produce an output, Q. Their respective marginal revenue products are $30 and $21. A costs $15 a unit and B $7 a unit. To reduce the cost of Q,

• A) more B and less A should be used.
• B) more A and less B should be used.
• C) more of both resources should be used.
• D) less of both resources should be used.

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Definitions:

Classifications of Corporations

Classifications of corporations involve categorizing companies based on their ownership structure, purpose, or tax status, such as public, private, nonprofit, or multinational corporations.

Descriptive Statements

Statements that describe or explain information, phenomena, or findings without offering opinions or arguments.

Contributed Capital

The total value of the cash and other assets given by shareholders in exchange for shares of the company's stock.

Bonds Payable

Long-term debt instruments issued by a company to borrow funds, where the company agrees to pay back the principal along with interest on specified dates.