Suppose a Firm Is Using Two Inputs,labor,and Capital

question 24

Multiple Choice

Suppose a firm is using two inputs,labor,and capital.What will happen if the price of labor falls?

• A)The firm's average cost curve will shift upward.
• B)The firm's marginal cost curve will shift downward.
• C)To produce the same level of output,the firm would need more capital.
• D)The firm's total cost of production will increase.

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