Solved

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

Question 85

Multiple Choice

If a firm's production function is Leontief and the price of capital goes down,the:


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

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions