When a Cost-Minimizing Firm Is Faced with an Increase in the Relative

question 34

Multiple Choice

When a cost-minimizing firm is faced with an increase in the relative price of labour,it adjusts its factor usage so as to

• A)increase the marginal product of capital relative to the marginal product of labour.
• B)increase the marginal product of labour relative to the marginal product of capital.
• C)use more labour per unit of output than before.
• D)use more of both capital and labour per unit of output.
• E)maintain the previous usage of labour.

---

Definitions:

Vacancy Model

A framework or method used for determining and forecasting the vacancies within an organization, often for the purpose of succession planning or talent management.

Mass Customization in HR

Personalizing the management and development of employees on a large scale to meet individual needs while achieving efficiency.

Human Capital Segmentation

The process of dividing an organization's human capital into key groups based on various criteria for strategic management purposes.

HR Supply Analysis

The process of determining the future supply of human resources available within an organization, accounting for factors like retirements, promotions, and turnovers.