The Productivity of a South American Country Is Given by the Function

question 121

Multiple Choice

The productivity of a South American country is given by the function when x units of labor and y units of capital are used. What is the marginal productivity of labor and what is the marginal productivity of capital when the amounts expended on labor and capital are 288 units and 18 units, respectively? Should the government encourage capital investment rather than increased expenditure on labor at this time in order to increase the country's productivity? Please answer yes or no.

• A) The marginal productivity of labor is 5. The marginal productivity of capital is 80. The government should have encouraged increased spending on capital rather than on labor.
• B) The marginal productivity of labor is 3.75. The marginal productivity of capital is 20. The government should not have encouraged increased spending on capital rather than on labor.
• C) The marginal productivity of labor is 3.75. The marginal productivity of capital is 20. The government should have encouraged increased spending on capital rather than on labor.
• D) The marginal productivity of labor is 5. The marginal productivity of capital is 80. The government should have encouraged increased spending on labor rather than on capital.

---

Definitions:

Process Configuration

Process configuration involves setting up the parameters and operational modes of a process within a manufacturing or service delivery framework.

Intermittent Processes

Production or manufacturing processes characterized by a non-continuous and irregular operation, typically used for custom or non-standard items.

Repetitive Focus

A manufacturing strategy that emphasizes producing large volumes of the same product or service, aiming for efficiency and consistency in output.

Cross-Over Point

The point at which two different options or systems result in the same level of cost or benefit, making them equally preferable under the conditions given.