Suppose a Firm Can Only Vary the Quantity of Labor

question 82

Multiple Choice

Suppose a firm can only vary the quantity of labor hired in the short run.An increase in the cost of capital will

• A) increase the firm's marginal cost.
• B) decrease the firm's marginal cost.
• C) have no effect on the firm's marginal cost.
• D) More information is needed to answer the question.

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Definitions:

Professional Interests

Areas of focus or concern in one's career that align with their expertise and aspirations.

Job Market

The availability of employment and labor, in terms of supply and demand, within an economy.

Potential Employer

a business or individual who might hire someone as an employee.

Motivated

Having a strong desire or willingness to do something.