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If a Firm's Production Function Is Leontief and the Wage

Question 126

Multiple Choice

If a firm's production function is Leontief and the wage rate goes up,the:


A) firm must use more labor in order to minimize the cost of producing a given level of output.
B) firm must use more capital in order to minimize the cost of producing a given level of output.
C) firm must use less labor in order to minimize the cost of producing a given level of output.
D) cost minimizing combination of capital and labor does not change.

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