Suppose That at a Point on an Isoquant,the Following Information

question 88

Multiple Choice

Suppose that at a point on an isoquant,the following information is true: MP_L = 3 and MP_K = 2.Then if K falls by 5,L must increase by:

• A)0.30.
• B)0.67.
• C)3.33.
• D)1.50.

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Definitions:

Efficiently

Performing or functioning in the best possible manner with the least waste of time and effort, ensuring productivity and effectiveness.

Total Output

The aggregate quantity of goods or services produced by an economy, sector, or firm within a given period.

Specialize

Focus on a specific area of expertise or production to achieve greater efficiency.

Production Possibilities

A curve representing all possible combinations of maximum outputs that could be produced with a fixed amount of resources.