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.
-Refer to Table 8- 2. As this firm switches from production method A to production method G, production is
A) remaining at a cost- minimizing level of output.
B) becoming more labour intensive and less capital intensive.
C) becoming more profitable.
D) becoming more capital intensive and less labour intensive.
E) moving farther and farther away from cost minimization.
Correct Answer:
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Q21: Suppose that a firm is using 100
Q22: In the long run, a profit- maximizing
Q23: A short- run average total cost curve
Q24: Q25: Increasing returns to scale Q27: A short- run average total cost curve Q28: The creation of a new product is Q29: Suppose that a firm is using 100
A) means that output
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