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.

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Definitions:

Systems Software

The fundamental software that manages and controls the hardware components and provides a platform for running application software.

OS

An Operating System (OS) is software that manages computer hardware, software resources, and provides common services for computer programs.

NUIs

Natural User Interfaces (NUIs) are user interfaces that aim to interact with the user in a natural way, using gestures, voice, touch, and other human actions as input.

Gesture-Control Interfaces

Interaction systems that interpret human gestures via devices such as motion sensors or cameras to input commands to a computer or machine.