问题


There is a single choice question about high school microeconomics. Answer the question by replying A, B, C or D.
Question: 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?
A. Increase capital and decrease labor so that the marginal product of capital falls and the marginal product of labor rises.
B. Increase capital and decrease labor so that the marginal product of capital rises and the marginal product of labor falls.
C. Decrease capital and increase labor so that the marginal product of capital rises and the marginal product of labor falls.
D. Decrease capital and increase labor so that the marginal product of capital falls and the marginal product of labor rises.
Answer:

答案

模型 模型答案 正确答案
金声玉亮2.0 C C
deepseekr1

The firm should equalize the marginal product per dollar spent on labor and capital. Calculating the ratios:
- MPL/Price of Labor = 200/2 = 100
- MPK/Price of Capital = 50/1 = 50

Since labor provides a higher marginal product per dollar, the firm should **increase labor** (causing MPL to fall due to diminishing returns) and **decrease capital** (causing MPK to rise as fewer units are used). This adjustment aligns with option **C**, which correctly identifies the input changes and their effects.

**Answer: C**
C
gpto1 C C
GPT-4o A. Increase capital and decrease labor so that the marginal product of capital falls and the marginal product of labor rises. C
llama3.1-70B-Instruct

A
C
llama3.1-405B-Instruct

The correct answer is A. Increase capital and decrease labor so that the marginal product of capital falls and the marginal product of labor rises.

Explanation:

The firm should aim to equate the marginal product of each input to its price. Currently, the marginal product of labor (200) is greater than its price ($2), and the marginal product of capital (50) is less than its price ($1). To optimize, the firm should increase the use of capital, which will decrease its marginal product, and decrease the use of labor, which will increase its marginal product. This will bring the marginal products closer to their respective prices, maximizing efficiency.
C
DeepSeek-Coder-V2 C C
Qwen2-72B-Instruct A. Increase capital and decrease labor so that the marginal product of capital falls and the marginal product of labor rises. C
baichuan4 D C
doubao D.

To maximize profit, a firm should adjust inputs until the marginal product per dollar spent on each input is equal. The marginal product per dollar of labor is 200/2 = 100, and the marginal product per dollar of capital is 50/1 = 50. Since the marginal product per dollar of labor is greater than that of capital, the firm should decrease capital and increase labor so that the marginal product of capital falls and the marginal product of labor rises.
C
minimax To maximize output for the least cost, a firm should aim to equalize the marginal product per dollar spent on each input. This means that the firm should allocate resources until the marginal product per dollar spent on labor is equal to the marginal product per dollar spent on capital.

Let's calculate the marginal product per dollar for each input:

For labor: Marginal Product per Dollar = Marginal Product of Labor / Price of Labor
= 200 / $2
= 100

For capital: Marginal Product per Dollar = Marginal Product of Capital / Price of Capital
= 50 / $1
= 50

Since the marginal product per dollar for labor (100) is greater than that for capital (50), the firm should increase the use of labor and decrease the use of capital until the marginal product per dollar spent on both is equalized.

Therefore, the correct answer is:

A. Increase capital and decrease labor so that the marginal product of capital falls and the marginal product of labor rises.
C
kimi A

Explanation: The firm should aim to equate the marginal product of each factor of production to its price to minimize costs. This is known as the principle of cost minimization.

The marginal product of labor (MPL) is 200, and the price of labor (wage rate) is $2. So, the value of the marginal product of labor is MPL * price of labor = 200 * $2 = $400.

The marginal product of capital (MPK) is 50, and the price of capital is $1. So, the value of the marginal product of capital is MPK * price of capital = 50 * $1 = $50.

Currently, the firm is getting more value from labor than from capital. To minimize costs, the firm should increase its use of the factor that has a lower value of the marginal product relative to its price, which in this case is capital.

Therefore, the firm should increase capital and decrease labor so that the marginal product of capital rises and the marginal product of labor falls, bringing the value of the marginal products closer to the prices of the factors.
C
wenxinyiyan A

Explanation:

The firm should seek to equalize the marginal product per dollar spent on each input. This is known as the principle of cost minimization or the optimal input combination rule.

Given:
Price of labor (w) = $2
Price of capital (r) = $1
Marginal product of labor (MPL) = 200
Marginal product of capital (MPK) = 50

We calculate the marginal product per dollar spent:
For labor: MPL/w = 200/2 = 100
For capital: MPK/r = 50/1 = 50

Since the marginal product per dollar spent on labor (100) is higher than that on capital (50), the firm should increase the use of labor and decrease the use of capital until the marginal product per dollar spent on each input is equalized. However, this direct approach is not among the given options.

Looking at the options, we can reason as follows:

Increasing capital and decreasing labor (as in options A and B) would initially make the marginal product of capital fall (due to the law of diminishing marginal returns) and the marginal product of labor rise (because less labor is being used, so each additional unit of labor would be more productive). This description matches option A.

Decreasing capital and increasing labor (as in options C and D) would have the opposite effect, which is not what the firm should do based on the current marginal products and prices.

Between options A and B, option A is more accurate because increasing the use of capital (while decreasing labor) would indeed cause the marginal product of capital to fall due to diminishing marginal returns. Similarly, decreasing the use of labor would make each remaining unit of labor more productive, thus increasing the marginal product of labor.

Therefore, the correct answer is A.
C
zhipu To determine the correct action for the firm, we need to consider the marginal product per dollar spent on each input. This helps us identify whether the firm is allocating its resources efficiently.

1. **Marginal Product per Dollar of Labor (MPL/PL):**
\[
\text{MPL/PL} = \frac{200}{2} = 100
\]

2. **Marginal Product per Dollar of Capital (MPK/PK):**
\[
\text{MPK/PK} = \frac{50}{1} = 50
\]

Since the marginal product per dollar of labor (100) is greater than the marginal product per dollar of capital (50), the firm is getting more output per dollar spent on labor compared to capital. Therefore, the firm should use more labor and less capital to increase overall efficiency.

To make this adjustment, the firm should:
- **Decrease capital**, which will increase the marginal product of capital (since the marginal product of capital tends to rise when less of it is used, following the principle of diminishing returns).
- **Increase labor**, which will decrease the marginal product of labor (since the marginal product of labor tends to fall when more of it is used, following the principle of diminishing returns).

The correct answer that aligns with these adjustments is:

C. Decrease capital and increase labor so that the marginal product of capital rises and the marginal product of labor falls.

So, the answer is C.
C
gpto1 C C