A Firm Is Producing 100 Pencils Per Week

question 99

Multiple Choice

A firm is producing 100 pencils per week. The production process requires labor and capital as inputs. Labor costs $6 per labor hour, and capital costs $12 per machine hour. Currently, the marginal product of labor is 18 pencils and the marginal product of capital is 36 pencils. To minimize the cost of producing this level of output, the firm should use

• A) more capital and less labor.
• B) more labor and less capital.
• C) less labor and less capital.
• D) the current amounts of labor and capital.

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Definitions:

Agenda-Setting

The ability of the media to influence the importance placed on the topics of the public agenda by choosing what stories are given exposure and how much attention they receive.

Censored News

Information, often pertaining to current events or important subjects, that has been suppressed, altered, or controlled to prevent certain perspectives or details from being widely known.

Polysemy

Having many possible meanings or interpretations.

Textual Poaching

The practice of fans or consumers creatively appropriating and transforming media content for their own purposes.