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If Capital Is Fixed, but a Firm Varies Labor

Question 22

Multiple Choice

If capital is fixed, but a firm varies labor


A) the firm stays on the same isoquant.
B) the firm moves to a new isoquant.
C) the firm might move to a new isoquant, depending on how much labor is added.
D) the firm's output will be dependent on the marginal rate of technical substitution.

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