Multiple Choice
Suppose the price of capital and labor remain constant but that the average educational level of workers has increased and therefore, productivity of labor increases.This would lead a firm
A) to adopt a more capital-intensive production technology.
B) to adopt a more labor-intensive technology.
C) to keep its output and production technology unchanged, but to use fewer units of labor.
D) to use only labor to produce the product.
Correct Answer:

Verified
Correct Answer:
Verified
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