A Firm Produces 5 Units of Output from the Last

question 174

Multiple Choice

A firm produces 5 units of output from the last dollar it spends on labor and 10 units from the last dollar spent on capital. The firm should

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

Interpret and apply compound interest calculations to predict future investment values and returns based on historical data.

Understand the concepts of income yield, capital gain yield, and total return in bond investments.

Calculate the income yield on bond investments.

Calculate the capital gain yield on bond investments.