In the Long Run,a Reduction in Productivity Will Cause

question 26

Multiple Choice

In the long run,a reduction in productivity will cause

• A)an increase in the capital-labor ratio and an increase in consumption per worker.
• B)an increase in the capital-labor ratio and a decrease in consumption per worker.
• C)a decrease in the capital-labor ratio and a decrease in consumption per worker.
• D)a decrease in the capital-labor ratio and an increase in consumption per worker.

---

Definitions:

Monopoly Firm

A company that is the sole provider of a particular product or service in a market, lacking direct competition.

Output Level

This refers to the quantity of goods or services produced by a firm or an economy within a specific period.

Monopolist

A market participant that has exclusive control over the supply of a particular commodity or service, allowing it to influence price and market conditions.

Profit Maximizing

The process or strategy of adjusting production and operational variables to achieve the highest possible profit.