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:

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A medical condition characterized by a strong, often uncontrollable desire to drink alcohol, leading to a physical and psychological dependence.