Assume the Backwoods Shoe Company Hires Three Inputs: Labor (L)

question 24

Multiple Choice

Assume the Backwoods Shoe Company hires three inputs: labor (L) , capital (K) , and land (A) to produce shoes (X) . Which of the following conditions must be met so that the firm is using the optimal, or least costly, combination of inputs?

• A) MPL = MPK = MPA
• B) PL = PK = PA
• C) MPL/PL = MPK/PK = MPA/PA
• D) MPL = MPK = MPA = 1/PX

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Definitions:

Cohesive Group

A group characterized by unity and strong bonds among its members, leading to higher levels of cooperation and collective action.

Dissent

Disagreement with or opposition to the prevailing viewpoint or decision.

Cross-functional Teams

Teams composed of members from various departments and specialties working together towards a common goal.

Conflicting Loyalties

A situation in which an individual or group faces competing allegiances or commitments, potentially hindering decision-making or performance.