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:
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Q8: The short run total cost of zero
Q9: The vertical distance between the total variable
Q10: A firm that is trying to produce
Q11: The vertical distance between the average variable
Q12: The total cost curve
A)is a horizontal line.
B)increases
Q14: Once we enter the region of diminishing
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Q16: Total cost is broken down into two
Q17: Output for a simple production process is
Q18: The variable cost of zero units of
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