If labor and capital are substitute resources in production, an increase in the price of capital will
A) increase the wage rate and decrease the number of workers hired.
B) decrease the wage rate and increase the number of workers hired.
C) decrease the wage rate and decrease the number of workers hired.
D) increase the wage rate and increase the number of workers hired.
Correct Answer:
Verified
Q7: A firm will continue hiring labor as
Q21: If a large decrease in rent leads
Q23: The marginal revenue product schedule for land
Q23: An increase in the demand for steel
Q26: A decline in the wage rate would
A)raise
Q27: An increase in the price of crude
Q28: A rise in the marginal revenue product
Q31: The most important influence on the marginal
Q40: The demand for an input is called
Q57: If the output per acre of land
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