If Capital Is Fixed, but a Firm Varies Labor

question 22

Multiple Choice

If capital is fixed, but a firm varies labor

• A)the firm stays on the same isoquant.
• B)the firm moves to a new isoquant.
• C)the firm might move to a new isoquant, depending on how much labor is added.
• D)the firm's output will be dependent on the marginal rate of technical substitution.

---

Definitions:

New Patterns Of Behavior

Refers to the emergent behaviors and habits of individuals or groups, especially as seen in consumer markets or societal changes.

Brand Extension

The practice of using an established brand name to introduce a new product in a different category.

Colgate's Kitchen Entrees

A real, albeit unsuccessful, product line extension by Colgate, traditionally known for toothpaste, into the food sector.

Innovation Strategy

A plan formulated by an organization to encourage advancements in technology or services, aiming to gain a competitive advantage and meet consumer needs.