All else equal, if the price of a variable input falls, managers should decrease the use of that input and increase the use of other inputs.

Name: All else equal, if the price of a variable input falls, managers should decrease the use of that input and increase the use of other inputs.
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Question

Quizplus · Accepted Answer

When the price of a variable input falls, it becomes cheaper for managers to use more of that input relative to others, so they should increase its use, not decrease it.

All Else Equal, If the Price of a Variable Input