Assume That Creative Ceramics Can Vary Both Capital and Labor

Multiple Choice

Assume that Creative Ceramics can vary both capital and labor. An increase in the amount of capital will

A) have no impact on the productivity of labor.
B) cause the firm to move down along the marginal revenue product of labor curve and hire more labor.
C) cause the marginal revenue product of labor curve to be more inelastic.
D) shift the marginal revenue product of labor curve out to the right.