Suppose the Price of Capital and Labour Remain Constant but That

question 162

Multiple Choice

Suppose the price of capital and labour remain constant but that the average educational level of workers has increased and therefore, productivity of labour increases.This would lead a firm

• A)to adopt a more capital-intensive production technology.
• B)to adopt a more labour-intensive technology.
• C)to keep its output and production technology unchanged but use fewer units of labour.
• D)to use only labour to produce the product.

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Definitions:

Environment Scan

The process of collecting and analyzing information about the internal and external environment to identify opportunities and threats.

Best-Cost Provider

A strategy where a company aims to offer products or services that are of high quality and relatively low cost to attain a competitive advantage.

Porter's

Porter's frameworks involve strategic tools created by Michael Porter, such as the Five Forces analysis and the Value Chain, used for assessing the competitive environment and organizational capabilities.

Locally Grown

Refers to products, especially food items, that are produced and consumed within a relatively small geographic area.