A Firm Is Currently Using Two Inputs: Labor and Capital

question 29

Multiple Choice

A firm is currently using two inputs: labor and capital.It rents equipment for $1,000,which produces a value of the marginal product of $5,000.It hires workers at $10 per hour,who produce a value of the marginal product of $100.The wages of workers rise by 20 percent and the rental price of capital increases by 25 percent.The firm should hire ________ labor and ________ capital.

• A) more; more
• B) more; less
• C) the same amount of; the same amount of
• D) less; more
• E) less; less

Identify embryonic structures and their purposes during prenatal development.

Understand the hormonal control and physiological processes of human reproduction.

Recognize the structural and functional differences between male and female reproductive organs.

Explain the fertilization process and early embryonic development leading to implantation.

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Definitions:

External Benefits

Positive effects experienced by third parties or the broader society as a result of an economic transaction or activity that are not reflected in market prices.

Market Demand Curve

A graphical representation showing the relationship between the price of a good and the total quantity demanded by all consumers in the market.

Positive Externality

A benefit that affects a party who did not choose to incur that benefit, often associated with public goods and services.

Free-Market Economy

An economic system where prices are determined by unrestricted competition between privately owned businesses without government intervention.