Suppose That Each Worker Must Use Only One Shovel to Dig

question 114

Multiple Choice

Suppose that each worker must use only one shovel to dig a trench,and shovels are useless by themselves.In the long run,an increase in the price of shovels will result in

• A) fewer shovels being purchased to produce the same number of trenches.
• B) more workers being hired to produce the same number of trenches.
• C) the firm wishing to produce more trenches.
• D) no change in the firm's input mix.

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Definitions:

Sales

The total amount of revenue generated from selling goods or services over a given period.

Retained Earnings

Retained earnings represent the portion of a company's net income that is kept within the company after dividends are paid to shareholders, used for reinvestment or debt payment.

December

The Gregorian calendar's final and twelfth month marks the end of the year.

Raw Materials

The basic materials that are processed or used to manufacture goods.