Suppose a Technological Improvement Increases the Productivity of a Firm's

question 18

Multiple Choice

Suppose a technological improvement increases the productivity of a firm's capital and, simultaneously, its workers' union negotiates a wage increase. We can predict that

• A) the firm will use relatively more capital and relatively less labor.
• B) the firm will use relatively more labor and relatively less capital.
• C) inputs of capital and labor will be unchanged.
• D) the firm's equilibrium output will necessarily increase.

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Definitions:

Abdominopelvic Cavity

The bodily cavity that comprises the abdominal cavity and the pelvic cavity, housing organs such as the liver, stomach, intestines, and reproductive organs.

Midsagittal

Pertaining to a plane that divides the body into equal left and right halves.

Cranial and Spinal

This refers to structures or functions related to both the cranium (skull) and the spine, often in the context of nerves or the central nervous system.

Continuous Cavities

Body spaces that are not separated by solid structures and allow for the continuous distribution of fluids or tissues.