Suppose Capital and Labor Are Perfect Substitutes for a Particular

question 48

Multiple Choice

Suppose capital and labor are perfect substitutes for a particular production process. If the price of labor increases, holding the price of capital and the level of output constant, the firm may:

• A)use more capital and less labor.
• B)use more labor and less capital.
• C)use the same amounts of capital and labor.
• D)Either use more capital and less labor or use the same amounts of both inputs.

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Definitions:

Sleep Spindles

Short bursts of brain activity that occur during stage 2 of non-REM sleep, thought to play a role in learning and memory.

K-complexes

Brainwaves seen in stage 2 sleep that are characterized by a brief and well-defined downward deflection followed by an upward component.

N1 Sleep

The initial stage of the sleep cycle, representing the transition from wakefulness to sleep, characterized by light sleep and reduced sensory awareness.

N2 Sleep

A stage of sleep characterized by sleep spindles and K-complexes, representing a deeper level of sleep than N1 and preceding the transition to deeper, delta-wave N3 sleep.