Multiple Choice
Assume that Donnell Corp.is currently producing 500 units of output per period,using 25 units of labor and 20 units of capital.Values for the marginal product of each input and the prices of the inputs are as follows: MPK = 100,MPL = 200,w = 2,and r = 3.Given the information above,which of the following is true?
A) The firm is currently using the optimal levels of capital and labor.
B) The firm should increase capital and reduce labor usage.
C) The firm should increase labor and reduce capital usage.
D) The firm is not using the optimal levels of capital and labor,and it is impossible to determine the optimal levels from the given information.
Correct Answer:
Verified
Correct Answer:
Verified
Q97: Assume that the long run average cost
Q98: Learning by doing is illustrated by:<br>A)a movement
Q99: Which of the following changes shift the
Q100: Explain why the long-run average cost curve
Q101: Long-run costs of production are generally lower
Q103: Once diminishing returns have set in,each additional
Q104: Suppose the government restricts the amount of
Q105: For the cubic total cost function TC
Q106: Which of the following is true at
Q107: Consider a graph with a total variable