A Competitive Firm Uses Two Inputs: Capital and Labor

question 32

Multiple Choice

A competitive firm uses two inputs: capital and labor.At its current level of hiring of both inputs,capital's marginal product is 12 while labor's marginal product is 18.Capital's cost (C) is $8 per unit while labor's cost (W) is $9.In the long run,to produce the same output at a lower cost,the firm should

• A) hire more labor and less capital.
• B) hire less labor and less capital.
• C) hire more labor and more capital.
• D) hire less labor and more capital.

Grasp the role of flexibility, inner motivation, and risk tolerance in creativity and problem solving.

Distinguish between convergent and divergent thinking scenarios in real-world applications.

Appreciate the importance of validity in the context of psychological assessments.

Acknowledge the influence of heredity and environment on intelligence and creativity.

---

Definitions:

Quick Preparation

Referring to food or meals that are designed to be prepared and served in a short amount of time with minimal effort.

Recipe Contest

A promotional activity or event where participants submit their original recipes for a chance to win prizes.

In-Store Demonstrations

Promotional events held within retail locations where products are showcased and demonstrated to potential customers.

Bundle Pricing

A marketing strategy where multiple products or services are packaged together and sold at a single price, often at a discount compared to buying each item separately.