Economics 9708 · AS & A Level · Factors of production

Factors of production — practice question

A firm produces good X and good Y when the marginal product of both labour and capital is diminishing. The table gives the marginal products for a particular output level. To raise productive efficiency, the firm ought to employ ««1«« labour and ««2«« capital in producing X and ««3«« labour and ««4«« capital in producing Y. Which words fill gaps 1, 2, 3 and 4 if the firm wanted to increase productive efficiency?

  • Aless; more; more; less
  • Bless; more; more; more
  • Cmore; less; less; more
  • Dmore; less; less; less

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