Firms Have an Incentive to Substitute Labor for Capital as the

question 53

Multiple Choice

Firms have an incentive to substitute labor for capital as the

• A) price of capital increases.
• B) price of capital decreases.
• C) price of labor increases.
• D) marginal product of labor decreases.

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Definitions:

Footprints

Marks left by a foot or shoe on a surface, often used metaphorically to refer to evidence or a trace of someone's presence or impact.

Valid Argument

An argument in which, if the premises are true, the conclusion necessarily follows, maintaining logical consistency.

Fugitive

A person who has escaped from capture or is in hiding, often to avoid arrest or persecution.

Valid Argument

A logical sequence of statements where if the premises are true, the conclusion must also be true.