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If a Firm Fired One Worker and Lost 12 Units

Question 124

Multiple Choice

If a firm fired one worker and lost 12 units of production and decides to add one more unit of capital, then to remain on the same isoquant what must be TRUE?


A) The MPK of the next unit of capital added equals 12.
B) The firm must force the other workers to work more.
C) The firm will experience a decline in output.
D) The marginal rate of technical substitution is greater than 12.

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