Suppose the price of capital and labor remain constant but that the average educational level of workers has increased and therefore, productivity of labor increases. This would lead a firm
A) to adopt a more capital-intensive production technology.
B) to keep its output and production technology unchanged, but to use fewer units of labor.
C) to adopt a more labor-intensive technology.
D) to use only labor to produce the product.
Question 2
Suppose there are economies of scale in the production of a specialized memory chip that is used in manufacturing microwaves. This suggests that the microwave industry is a decreasing-cost industry.
Indicate whether the statement is true or false
On average, the ratio of carbon to nitrogen is much higher in terrestrial plants than in other major
Marginal Products of Physical and Human Capital
A Production Function with Diminishing Marginal Product of Capital
Capital’s Share of Income in a Cross-Section of Countries
Relative Humidity Changes at Constant Water-Vapor Content
At 34.5°C, oxygen gas expands from 34.5 L to 45.7 L against a constant pressure of 750 mmHg. ...