Suppose the Marginal Product of Labor Is 10 and the Marginal

question 166

Multiple Choice

Suppose the marginal product of labor is 10 and the marginal product of capital is 8.If the wage rate is $5 and the price of capital is $2,then in order to minimize costs the firm should use:

• A) more capital and less labor.
• B) more labor and less capital.
• C) equal amounts of labor and capital.
• D) None of the preceding statements is correct.

Analyze scenarios to determine the most appropriate pricing strategy based on company and customer location.

Understand the implications of FOB (Free on Board) terms on shipping responsibilities and costs.

Recognize the role of government regulation in preventing unfair pricing practices such as price fixing and price discrimination.

Identify and evaluate the impacts of pricing decisions on both buyers and sellers in different geographical locations.

---

Definitions:

Expected Behavior

Actions or reactions that are anticipated in a given context based on societal norms, rules, or personal standards.

Great-person Theory

A theory of leadership that suggests history is shaped by the actions of great individuals who possess unique characteristics and talents.

Steve Jobs

Co-founder of Apple Inc., influential in the development of personal computers and innovative technology products like the iPod, iPhone, and iPad.

Bill Gates

Co-founder of Microsoft Corporation, an influential technology magnate, philanthropist, and one of the world's wealthiest individuals.