Solved

In the Widget Industry,it Takes Two Workers (With Other Inputs)to

Question 21

Multiple Choice

In the Widget industry,it takes two workers (with other inputs) to produce each widget and since consumers demand 1000 widgets at its current price,2000 workers are employed in the industry.Which of the following could occur if the price of capital falls and labor and capital are substitutes in production?


A) It takes 2.2 workers per widget and 1200 widgets are produced and sold.
B) It takes 1.9 workers per widget and 1200 widgets are produced and sold.
C) It takes 2.2 workers per widget and 900 widgets are produced and sold.
D) It takes 1.9 workers per widget and 900 widgets are produced and sold.

Correct Answer:

verifed

Verified

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

Related Questions