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MMLU-Pro / 7433 / The price of labor is 2,andthepriceofcapitalis1. The marginal product…

Problem

Answer published by the source. Consult the official source to check your work against its answer.

question

The price of labor is 2,andthepriceofcapitalis2, and the price of capital is 1. The marginal product of labor is 200, and the marginal product of capital is 50. What should the firm do?
Plain-text mathematical notation (without MathML)
The price of labor is 2,andthepriceofcapitalis1. The marginal product of labor is 200, and the marginal product of capital is 50. What should the firm do?
Original LaTeX notation
The price of labor is $2, and the price of capital is $1. The marginal product of labor is 200, and the marginal product of capital is 50. What should the firm do?

category

economics

options

  1. Decrease capital and increase labor so that the marginal product of capital falls and the marginal product of labor rises.
  2. Increase capital and decrease labor so that the marginal product of capital rises and the marginal product of labor falls.
  3. Increase both labor and capital so that both the marginal product of capital and labor rises.
  4. Increase labor and keep capital constant so that the marginal product of labor falls and the marginal product of capital remains the same.
  5. Decrease both labor and capital so that both the marginal product of capital and labor falls.
  6. Keep labor constant and decrease capital so that the marginal product of labor remains the same and the marginal product of capital falls.
  7. Keep labor constant and increase capital so that the marginal product of labor remains the same and the marginal product of capital rises.
  8. Decrease capital and increase labor so that the marginal product of capital rises and the marginal product of labor falls.
  9. Decrease labor and increase capital so that the marginal product of labor rises and the marginal product of capital falls.
  10. Increase capital and decrease labor so that the marginal product of capital falls and the marginal product of labor rises.

src

ori_mmlu-high_school_microeconomics

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Source and history

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