The following table shows the marginal products of capital (K) and labour (L) for various methods for Firm ABC to produce 1000 toys per day. TABLE 8- 2
-Refer to Table 8- 2.Suppose capital costs $6 per unit and labour costs $4 per unit and the firm is employing production method A.How should this firm adjust its use of capital and labour to minimize costs?
A) employ less capital and more labour
B) employ more capital and less labour
C) employ less capital and less labour
D) employ more capital and more labour
E) There is insufficient information to know.
Correct Answer:
Verified
Q53: With respect to innovation,which of the following
Q54: Which of the following is unlikely to
Q55: The principle of substitution plays a central
Q56: Suppose RioTintoAlcan is considering the construction of
Q57: If a firm is using labour and
Q59: The figure below shows a family of
Q60: Consider the short- run and long- run
Q61: Which of the following cost curves demonstrate
Q62: FIGURE 8- 4 Q63: Canada has a much lower population density
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents