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Suppose the Price of Capital and Labour Remain Constant but That

Question 162

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Suppose the price of capital and labour remain constant but that the average educational level of workers has increased and therefore, productivity of labour increases.This would lead a firm


A) to adopt a more capital-intensive production technology.
B) to adopt a more labour-intensive technology.
C) to keep its output and production technology unchanged but use fewer units of labour.
D) to use only labour to produce the product.

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