A result of the Le Châtelier Brown principle is
A) an increase in the price of capital has a larger effect in the short run than the long run.
B) an increase in the price of capital has a larger effect in the long run than the short run.
C) an increase in the price of labor has a larger effect in the short run than the long run.
D) an increase in the price of labor has a larger effect in the long run than the short run.
E) an increase in the price of labor has a large effect in the short run but no effect in the long run.
Correct Answer:
Verified
Q8: Suppose a firm uses three inputs in
Q9: What is the firm's long run optimal
Q10: Suppose the own wage elasticity of labor
Q10: Suppose the own wage elasticity of labor
Q11: Suppose a 2% increase in wages decreases
Q12: If capital and labor are gross complements
Q14: Suppose the substitution elasticity between capital and
Q16: Which of the following is a condition
Q17: When wages increase,
A) the scale and substitution
Q18: What are the firm's profits?
A) $1
B) $2
C)
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