When a Cost-Minimizing Firm Is Faced with an Increase in the Relative

question 34

Multiple Choice

When a cost-minimizing firm is faced with an increase in the relative price of labour,it adjusts its factor usage so as to

• A)increase the marginal product of capital relative to the marginal product of labour.
• B)increase the marginal product of labour relative to the marginal product of capital.
• C)use more labour per unit of output than before.
• D)use more of both capital and labour per unit of output.
• E)maintain the previous usage of labour.

---

Definitions:

Brand Ambidexterity

The capability of a brand to balance and manage both the exploration of new business opportunities and the exploitation of existing ones efficiently.

Mapping Innovation

A process or strategy used to visually plot or identify where new developments or creative solutions are occurring within a certain field or industry.

Brand Transformation

The process of fundamentally changing the brand’s identity, positioning, and image to meet new market dynamics or objectives.

New Identity

The process of developing or adopting a new image, brand, or persona, often to signify changes or evolution.