A Firm Uses Capital and Labour in Production

Multiple Choice

A firm uses capital and labour in production. To determine if the firm is technologically efficient, it

A) must know the cost of labour and the cost of capital.
B) does not need to know the cost of labour or the cost of capital.
C) must know the cost of labour but not the cost of capital.
D) must know the cost of capital but not the cost of labour.
E) must use unionized labour.