If the Cost of Using Skilled Labor Was Twice the Cost

question 111

Multiple Choice

If the cost of using skilled labor was twice the cost of using unskilled labor, and both were used by a profit-maximizing firm, the firm would adjust the quantity of each type of labor until

• A) the marginal product of each was the same.
• B) twice as much unskilled labor was used.
• C) half as much unskilled labor was used.
• D) the marginal product of skilled labor was twice that of unskilled labor.

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