Table 7-3 Shows the Combinations of Labor and Capital Required

question 20

Multiple Choice

Table 7-3 shows the combinations of labor and capital required to produce various level of output.
Refer to Table 7-3.If the firm is currently producing 26 units of output using three units of labor,what is the marginal rate of technical substitution of labor for capital at this point?

• A)-1
• B)-2
• C)-3
• D)-4

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Definitions:

Cremaster Muscle

A muscle that covers the testis and spermatic cord, involved in the reflex action of moving the testis closer to the body in response to cold or fear.

Vas Deferens

The duct that conveys sperm from the testicle to the urethra.

Spermatic Cord

A bundle of fibers and tissues in males that includes the vas deferens, blood vessels, nerves, and the cremaster muscle, responsible for supporting the testes.

Inguinal Canal

A passage in the lower anterior abdominal wall which in men, contains the spermatic cord and in women, the round ligament of uterus.