You Are an Efficiency Expert Hired by a Manufacturing Firm

question 67

Multiple Choice

You are an efficiency expert hired by a manufacturing firm that uses K and L as inputs.The firm produces and sells a given output.If w = $40,r = $100,MP_L = 20,and MP_K = 40 the firm:

• A) is cost minimizing.
• B) should use less L and more K to cost minimize.
• C) should use more L and less K to cost minimize.
• D) is profit maximizing but not cost minimizing.

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Definitions:

Id

In psychoanalytic theory, the part of the mind that is the source of instinctual impulses and demands for immediate satisfaction of primitive needs.

Freud

Sigmund Freud, an Austrian neurologist and the founding father of psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Biological Drives

Innate impulses in living organisms that lead to certain behaviors essential for survival.

Active Constructors

Refers to individuals or agents who actively engage in building or creating understanding, knowledge, or physical structures.