After a Firm Makes Both Short and Long Run Adjustments

question 3

Multiple Choice

After a firm makes both short and long run adjustments in its production plan following a reduction in the wage,

• 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 unchanged.
• D)the marginal product of capital may be higher or lower depending on the degree of substitutability between capital and labor.
• E)(a) and C
• F)(a) and (d)
• G)(b) and (c)
• H)(b) and (d)