Multiple Choice
Although capital is a variable factor in the long run,once chosen it often becomes a fixed factor for a long time.A profit-maximizing firm must therefore select a method of production that is
A) economically efficient at current factor prices.
B) technologically advanced beyond methods currently used.
C) labour intensive,as labour is always a variable factor.
D) economically efficient at current factor prices and sufficiently flexible to adapt to changing factor prices over time.
E) adaptable to wide ranges of output over time.
Correct Answer:

Verified
Correct Answer:
Verified
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