Suppose a Firm Uses Labor and Capital to Produce Output

question 116

Multiple Choice

Suppose a firm uses labor and capital to produce output.The last unit of labor hired has a marginal product of 12 units of output, and the last unit of capital employed has a marginal product of 20 units.Use the optimal combination of inputs rule to calculate the price of capital if the price of labor is $6 per unit.The price of capital is

• A)$2.
• B)$10.
• C)$20.
• D)impossible to determine with the information given.

Understand the varying impacts of marital and relationship status on well-being in late adulthood.

Comprehend the satisfaction levels in marriages during late adulthood.

Recognize the role of siblings in the emotional support system of older adults.

Identify the social desires and preferences across different age groups and health conditions.

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Definitions:

Subchapter S Stock

Shares of a corporation that elects to pass corporate income, losses, deductions, and credits to shareholders for federal tax purposes.

Corporate Charitable Contributions

Contributions made by a corporation to charitable organizations which are often tax-deductible.

Corporate Formation

Corporate formation refers to the legal process involved in creating a corporate entity or company, which includes filing the necessary documents with state authorities and fulfilling all legal requirements to start business operations.

Taxable Gain

The profit that is subject to taxation, realized from the sale of assets or investments.