Solved

If a Firm Is Using a Lot of Capital and Just

Question 11

Multiple Choice

If a firm is using a lot of capital and just a little labor, the marginal product of labor is_____ relative to the marginal product of capital making it _____ to substitute labor for capital.


A) low; more difficult
B) high; easier
C) high; more difficult
D) low; easier

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q6: (Table: Short-run Production I) The short-run production

Q7: Assume that Chia Pets International has the

Q8: (Table: Capital and Labor XIV) Consider the

Q9: (Figure: Capital and Labor VIII) The movement

Q10: The short-run production function for a firm

Q12: MRTS<sub>LK</sub> decreases as the firm substitutes labor

Q13: Why are the slopes of isocost lines

Q14: (Table: Short-run Production I) The short-run production

Q15: (Table: Short-run Production I) The short-run production

Q16: Suppose the production function for a coffee