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After a Firm Makes Both Short and Long Run Adjustments

Question 3

Multiple Choice

After a firm makes both short and long run adjustments in its production plan following a reduction in the wage,


A) the marginal product of labor will be higher.
B) the marginal product of labor will be lower.
C) the marginal product of capital will be unchanged.
D) the marginal product of capital may be higher or lower depending on the degree of substitutability between capital and labor.
E) (a) and C
F) (a) and (d)
G) (b) and (c)
H) (b) and (d)

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