A firm is producing 100 pencils per week. The production process requires labor and capital as inputs. Labor costs $6 per labor hour and capital costs $12 per machine hour. Currently, the marginal product of labor is 18 pencils and the marginal product of capital is 36 pencils. To minimize the cost of producing this level of output the firm should use:
A. More capital and less labor
B. More labor and less capital
C. Less labor and less capital
D. The current amounts of labor and capital
D. The current amounts of labor and capital
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One explanation that behavioral economists give for procrastination and other time-inconsistent behavior is
A) people's personal discount rate is greater in the far future than in the near future. B) people's personal discount rate is smaller in the far future than in the near future. C) people's personal discount rate is the same in the far future as in the near future. D) None of the above.
The slope of the total product curve is the
A) average product. B) slope of a line from the origin to the point. C) marginal product. D) marginal rate of technical substitution.