Suppose a firm is using two inputs, labor and capital. What will happen if the price of labor falls? A. To produce an unchanged output, the firm would use more labor and less capital . B. All of the above C. To produce an unchanged output, the firm would use more capital and less labor . D. The firm’s total cost curve will shift upwnward
Suppose a firm is using two inputs, labor and capital. What will happen if the price of labor falls? A. To produce an unchanged output, the firm would use more labor and less capital . B. All of the above C. To produce an unchanged output, the firm would use more capital and less labor . D. The firm’s total cost curve will shift upwnward
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Suppose a firm is using two inputs, labor and capital. What will happen if the
A.
To produce an unchanged output, the firm would use more labor and less capital .
B.
All of the above
C.
To produce an unchanged output, the firm would use more capital and less labor .
D.
The firm’s total cost curve will shift upwnward
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