Refer to the Following Graph

question 61

Multiple Choice

Refer to the following graph.The price of capital r) is $20. Why wouldn't the firm choose to produce 5,000 units of output with the combination at A?

• A)At A,MRTS < 3/2.
• B)At A,MP_K / r > MP_L / w.
• C)At A,MP_L > MP_K.
• D)both a and b
• E)none of the above

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Definitions:

Naive Forecast

A forecasting technique that assumes future values will be the same as past values, often used as a baseline for more complex models.

Time-series Data

Data points collected or recorded at successive points in time, often used to analyze trends, cycles, or patterns.

Seasonal Variation

Periodic fluctuations in data or phenomena that occur at regular intervals within a year due to seasonal factors.

Cycles

Periods or sequences in a system or process that repeat in a regular pattern, such as the phases of economic growth and decline or the operation of machinery.