If Average Labor Productivity Decreases, Then the Same Number of Employed

question 56

Multiple Choice

If average labor productivity decreases, then the same number of employed workers will always produce:

• A)more total output.
• B)more output per person.
• C)less total output.
• D)less output per person.

Identify the factors that cause shifts in isocost lines.

Understand how to interpret isocost lines in relation to the firm's costs of capital and labor.

Grasp the concept of optimal combination of capital and labor for a firm.

Learn how to derive a total cost curve from isoquants and isocost lines.

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