If a Firm's Production Function Is Leontief and the Price

question 85

Multiple Choice

If a firm's production function is Leontief and the price of capital goes down,the:

• A) firm must use less labor in order to minimize the cost of producing a given level of output.
• B) firm must use more capital in order to minimize the cost of producing a given level of output.
• C) firm must use less capital in order to minimize the cost of producing a given level of output.
• D) cost-minimizing combination of capital and labor does not change.

---

Definitions:

Spa Products

Items and formulations designed for use in beauty and relaxation treatments, often found at spas.

Positioning Strategy

A marketing strategy that aims to establish a brand or product in the mind of target consumers relative to competitors.

Market Segmentation

The practice of dividing a target market into smaller, clearly identified segments of consumers with similar needs, characteristics, or behaviors.

Consumer Profiling

The process of creating detailed descriptions of segments of buyers to inform targeting strategies and product development.