Assume That a Purely Competitive Firm Uses Two Resources, Labor

question 237

Multiple Choice

Assume that a purely competitive firm uses two resources, labor (L) and capital (C) , to produce a product. In which situation would the firm be maximizing profit? $\begin{array}{|c|c|c|c|c|}\hline & \text { MRPL } & \text { MRPC } & \text { PL } & \text { PC } \\\hline \text { A } & 20 & 40 & 60 & 80 \\\hline \mathrm{B} & 20 & 40 & 20 & 40 \\\hline \mathrm{C} & 30 & 30 & 20 & 20 \\\hline \mathrm{D} & 60 & 80 & 20 & 10 \\\hline\end{array}$

• A) A
• B) B
• C) C
• D) D

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Definitions:

Predictive Accuracy

The ability of a model or system to forecast future events or behaviors correctly.

Democratic Style

This refers to a leadership or decision-making style characterized by involving members of a group or organization in the decision-making process, ensuring that everyone's opinions and voices are heard.

Employee Engagement

A measure of how committed and involved an individual is towards their work and organization.

Human Factors Psychologists

Specialists who study how people interact with products, systems, and environments to improve safety, performance, and satisfaction.