Assume That the Price of Labor and Capital Have Remained

Multiple Choice

Assume that the price of labor and capital have remained the same, but that the average educational level of workers has increased and therefore the productivity of labor has increased. This would lead a firm to

A) use a more capital-intensive production technology.
B) use a more labor-intensive technology.
C) not change its production technology, but to produce fewer units of output.
D) use only labor to produce the product.