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:

Coxal Bone

Another term for the hip bone, comprising the ilium, ischium, and pubis, which connect the spine to the lower limbs.

Ilium

The largest bone of the pelvis, forming the uppermost part.

Ischium

One of the three bones that make up the pelvis, forming the lower and back part of the hip bone.

Osteoblasts

Cells responsible for bone formation.