Microeconomics

MCQ - 101-4111

Question:

In order to hire the least-cost combination of labor and capital, the firm must do which of the following?

Find the combination of labor and capital where the marginal product of labor is equal to the marginal product of capital.
Find the combination of labor and capital where the ratio of the marginal product of labor to the marginal product of capital is equal to one.
Find the combination of labor and capital where the marginal product of labor divided by the price of labor is equal to the marginal product of capital divided by the price of capital.
Find the combination of labor and capital where the ratio of the marginal product of labor to the marginal product of capital is equal to one.
Find the combination of labor and capital where the marginal revenue product of labor is equal to the marginal revenue product of capital.

Correct Answer: C

Explanation:

This choice describes the least-cost rule for hiring inputs.

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269 MCQ for effective preparation of the test of Microeconomics of Economics section.

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