Multiple Choice
Suppose a firm is employing labour (L) and capital (K) such that MPK/MPL = PK/PL. If the price of labour rises, the cost- minimizing firm should
A) do nothing.
B) employ more capital and less labour because MPK/MPL < PK/PL.
C) employ more labour and less capital because MPK/MPL < PK/PL
D) employ more labour and less capital because MPK/MPL > PK/PL.
E) employ more capital and less labour because MPK/MPL > PK/PL
Correct Answer:
Verified
Correct Answer:
Verified
Q44: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5438/.jpg" alt=" FIGURE 8- 4
Q45: By expressing the cost- minimizing condition as
Q46: The following table shows the marginal
Q47: Suppose that capital costs $6 per unit
Q50: Which of the following statements concerning long-
Q51: The figure below shows a family of
Q52: The figure below shows a family of
Q53: In the long run, the law of
Q54: When a firm seeks to minimize costs
Q105: TABLE 8-1<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5441/.jpg" alt="TABLE 8-1