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

question 126

Multiple Choice

If a firm's production function is Leontief and the wage rate goes up,the:

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

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Definitions:

Linguistic Intelligence

One of the multiple intelligences proposed by Howard Gardner, involving sensitivity to spoken and written language and the ability to learn languages.

Mathematical/Logical Intelligence

Refers to one of Howard Gardner's multiple intelligences, characterized by the ability to analyze problems logically, carry out mathematical operations, and investigate issues scientifically.

Emotional Intelligence

The ability to understand, use, and manage one's own emotions in positive ways to relieve stress, communicate effectively, empathize with others, and overcome challenges.

Practical Intelligence

The ability to solve everyday problems by utilizing knowledge gained from experience in order to effectively deal with tasks and challenges.