Answer the Question on the Basis of the Following Data

question 56

Multiple Choice

Answer the question on the basis of the following data: $\begin{array}{cccccc}Quantity &MP of& MRP of &\text{Quantity of}& MP of &MRP of\\of Labor& Labor& Labor& Capital &Capital &Capital\\\hline1 & 15 & \$ 45 & 1 & 8 & \$ 24 \\2 & 12 & 36 & 2 & 6 & 18 \\3 & 9 & 27 & 3 & 5 & 15 \\4 & 6 & 18 & 4 & 4 & 12 \\5 & 3 & 9 & 5 & 3 & 9 \\6 & 1 & 3 & 6 & 2 & 6\end{array}$ Refer to the given data.If the prices of labor and capital are $9 and $15 respectively,the profit-maximizing firm will hire:

• A) 5 units of labor and 3 of capital.
• B) 5 units of labor and 2 of capital.
• C) 4 units of labor and 4 of capital.
• D) 3 units of labor and 4 of capital.

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Definitions:

Balance of Power

is a principle in international relations that aims to maintain stability by preventing any one state from becoming too dominant.

Power Resource Theory

A theory in political science and sociology that argues that the distribution of political power is determined by the distribution of resources within a society.

Distribution of Power

The way in which authority and control are allocated among individuals and groups within a society or organization.

Power Resource Theory

A theory in political economy and sociology, suggesting that the power of social classes is rooted in their control over key resources, influencing the nature of social relations and policies.