Suppose labor and capital are both used to produce output.In the long run, if the wage rate rises while the rental rate on capital remains unchanged,
A) The process will become more labor intensive
B) The process will become more capital intensive
C) Market forces will come into play to bring the prices back to their earlier relationship
D) The marginal product of capital will rise and the marginal product of labor will fall
Correct Answer:
Verified
Q1: The following is true about point A:
A)The
Q3: The vertical distance between the total variable
Q4: For a given firm, whenever the ratio
Q5: The variable costs of producing an output,
Q6: Whenever the ratio of marginal products to
Q7: When costs are at a minimum,
A)The ratio
Q8: Given input prices and the usual strategy
Q9: A firm that is trying to produce
Q10: Once we enter the region of diminishing
Q11: Total cost is broken down into two
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