Answer:
B. Hire more labor and use less capital.
Explanation:
The firm producing at the profit-maximizing level of output means that Marginal Revenue = Marginal Cost, it can also be said that Marginal Productivity = Marginal wage/rent (Factor cost).
Therefore to minimize cost there should be a selection of factor mix that will be more efficient (i.e. comparing the cost of input to output) <u>which will be to use more of the cheaper input and less of the costlier input</u>
<u>Since the cost of labor is $10 and that of capital is $25, compared to the marginal productivity of 10 and 20 respectively, it can be seen that labor is the more efficient resource or factor. </u>
<u>Therefore</u><u> the cost minimizing choice of inputs</u><u> will be more of labor and less of capital will minimize costs</u>
A is the right answer. Hope this helped
Answer:
1 and 3 or A and C
Explanation:
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Answer:
Disability insurance is insurance against the loss of income.
Explanation:
Answer:
11.2%
Explanation:
In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below
Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
= 4% + 1.2 × 6%
= 4% + 7.2%
= 11.2%
The Market rate of return - Risk-free rate of return) is also known as the market risk premium and the same is applied.