If the Price of Labor Increases,in Order to Minimize the Costs

question 91

Multiple Choice

If the price of labor increases,in order to minimize the costs of producing a given level of output,the firm manager should use:

• A) less of labor and more of capital.
• B) less of labor and less of capital.
• C) more of labor and more of capital.
• D) more of labor and less of capital.

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Definitions:

Expected Returns

The average return anticipated on an investment, taking into account the probabilities of each possible outcome.

Standard Deviations

A statistic that measures the dispersion or spread of a set of data points in relation to their mean.

Investment

The action or process of allocating resources, usually money, with the expectation of generating an income or profit.

Positively Correlated

A relationship between two variables where if one variable increases, the other variable also increases.