Answer the Question on the Basis of the Following Information

question 39

Multiple Choice

Answer the question on the basis of the following information: Suppose a firm hires both labor (L) and capital (C) under purely competitive conditions.The price of labor is P_L and that of capital is P_C.The marginal product of labor is MP_L and that of capital is MP_C.The firm sells its product competitively at a price of P_X. Refer to the given information.Which of the following must pertain if the firm is to minimize the cost of producing any output?

• A) MP_C = MP_L = P_X.
• B) MP_C = P_C and MP_L = P_L.
• C) MP_C/P_C = MP_L/P_L.
• D) MP_C/P_X = MP_L/P_X.

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Definitions:

Group Decision Making

The process by which multiple individuals come together to analyze problems, consider options, and agree upon a course of action.

Collaborative Brainstorming

A group creativity technique by which efforts are made collectively to find a conclusion for a specific problem by gathering a list of ideas spontaneously contributed by its members.

Narcissists

Narcissists are individuals characterized by an inflated sense of self-importance, a deep need for excessive attention and admiration, and a lack of empathy for others.

Deindividuation

A psychological state in which an individual loses self-awareness and self-restraint, often in group contexts.