
Assume a firm uses two inputs,capital and labor.All else constant,an increase in the price of labor would create an incentive for the firm to:
A) substitute labor for capital in its production function.
B) substitute capital for labor in its production function.
C) hire more capital and labor.
D) hire less capital while holding the amount of labor employed constant.
Correct Answer:
Verified
Q1: Which of the following is least likely
Q3: In which of the following market structures
Q4: An increase in the amount of competition
Q5: The negatively-sloped part of the long-run average
Q6: All else constant,as the price of petroleum
Q7: According to the text there appear to
Q8: The fact that supermarkets,a land-intensive form of
Q9: Which of the following would have the
Q10: X-inefficiency refers to the situation in which:
A)highly
Q11: Assume a firm is currently employing 20
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents