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Elan Coil [88]
2 years ago
15

With its current levels of input use, a firm's MRTS is 1/3 (when capital is on the vertical axis and labor is on the horizontal

axis). This implies:__________.
A. the firm conld produce 3 more units of output if it increased its use of capital by one unit (holding labor constat).
B. the firm could produce 3 more units of output if it increased its use of labor by one unit (holding capital constant).
C. if the firm reduced its capital stock by one unit, it would have to hire 3 more worlkers to maintain its eurrent level of output.
D. the marginal product of labor is 3 times the marginal product of capital.
Business
1 answer:
bixtya [17]2 years ago
4 0

Answer: A. the firm could produce 3 more units of output if it increased its use of capital by one unit (holding labor constant).

Explanation:

The Marginal Rate of Technical Substitution(MRTS) is calculated as follows:

= Marginal product of labor / Marginal product of capital

= 1 / 3

Marginal product of labor = 1

Marginal product of capital = 3

This means that if one unit of labor is used, it produces 1 unit of output.

If one unit of capital is used however, it produces 3 units of output.

If a firm therefore used one unit of capital and kept labor constant, it could produce 3 units out output.

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Answer:

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3 years ago
Procter & Gamble’s June 30, 2016, financial statements reported the following (in millions): Cash, beginning of year $ 6,836
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Answer:

(9,594)

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5 0
3 years ago
At a price of $5/hour, bob wants to hire three workers. when the price rises to $7/hour, bob wants to hire only two workers. bob
Rashid [163]
$5 per worker
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$7 per worker
7*2=14
total of what he pays the workers per hour
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According to the law of increasing opportunity cost,
Alenkinab [10]

Answer:

The correct answer is a. production points outside the production possibility frontier are unattainable

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Production possibility frontier graph is attached.

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Download xlsx
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