Question 1
If a firm is able to produce ________ output even after reducing its labor workforce, this implies that the firm has excess labor.
◦ more
◦ less
◦ the same amount of
◦ no
Question 2
A firm is more likely to invest in new capital if
◦ the productivity of capital is high.
◦ it has no excess capital.
◦ it expects future sales to grow.
◦ All of these.