After a Firm Makes Short-Run Adjustments in Its Production Plan

question 14

Multiple Choice

After a firm makes short-run adjustments in its production plan following a wage increase,

• A)the marginal product of labor will be higher.
• B)the marginal product of labor will be lower.
• C)the marginal product of capital will be higher.
• D)the marginal product of capital will be lower.
• E)(a) and C
• F)(a) and (d)
• G)(b) and (c)
• H)(b) and (d)

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Definitions:

Psychological Essentialism

The idea that people possess implicit theories about fundamental characteristics that all instances of a concept contain or embody.

Mental Representation

Internal cognitive symbols that represent external reality or abstract concepts, enabling understanding and reasoning.

Essences

The intrinsic nature or indispensable quality of something, especially something abstract, that determines its character.

DNA

Stands for Deoxyribonucleic Acid, which is a molecule that carries the genetic instructions used in the growth, development, functioning, and reproduction of all known living organisms and many viruses.