Assume That Capital and Labor Are Complementary Inputs

question 33

Multiple Choice

Assume that capital and labor are complementary inputs. If the firm decreases the amount of capital it employs, this would

• A) cause the firm to move down along the MP schedule for labor.
• B) cause the firm to move up along its MP schedule for labor.
• C) shift the firmʹs MP schedule for labor to the left.
• D) shift the firmʹs MP schedule for labor to the right.

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Definitions:

Colonial Products

Goods and commodities that were traditionally produced in colonies, such as tea, sugar, coffee, and spices, often exploited for economic gain by colonial powers.

Yamasee War

The Yamasee War was a conflict between colonial South Carolina and several Native American tribes, including the Yamasee, in 1715-1717, partly due to disputes over trade and territory.

Indian Tribes

Indigenous groups in the United States, recognized as sovereign entities with their own governance and cultural practices.

Carolinas

Refers to the region comprised of the U.S. states North Carolina and South Carolina, originally established as a single British colony.