At Its Current Level of Production and Input Employment, a Firm's

question 72

Multiple Choice

At its current level of production and input employment, a firm's marginal products of labor and capital are 5 units of output. The market wage is $10 per unit of labor and the price per unit of capital is $25. The firm could increase its profits by

• A) hiring more labor and less capital.
• B) hiring more capital and less labor.
• C) hire less capital and less labor.
• D) making no changes since it is already employing the profit maximizing combination of inputs.

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Definitions:

Electronic Media

Forms of media that require electrical or digital equipment to be accessed by the audience, including television, radio, and the internet.

Rework the Balance

The process of adjusting or redistributing elements to achieve a more desirable or harmonious state in various contexts, including work-life balance or ecological equilibrium.

Social Reality

The sum of social constructs, beliefs, traditions, and practices accepted by a group of people as the context of their everyday life.

Creating Social Reality

The process through which media and communication practices construct and shape the perception of social norms and realities.