If a Firm Increases the Ratio of Capital to Labor

question 128

Multiple Choice

If a firm increases the ratio of capital to labor, it becomes more:

• A) labor intensive.
• B) output intensive.
• C) capital intensive.
• D) cost intensive.

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Definitions:

Controlling

Exerting influence or authority over others in a dominating or manipulating manner.

Fear

An unpleasant emotion caused by the belief that someone or something is dangerous, likely to cause pain, or a threat.

Change

The process of becoming different, which can occur in a variety of contexts including personal, social, and professional.

Daunting

Describing a task or situation that seems intimidating or difficult to achieve.