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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