If a Firm Could Increase Profits by Hiring Less Labor

question 5

Multiple Choice

If a firm could increase profits by hiring less labor and more capital, then

• A) the last dollar spent on labor must yield a smaller increase in output than the last dollar spent on capital.
• B) the last dollar spent on labor must yield a larger increase in output than the last dollar spent on capital.
• C) the price of labor exceeds the price of capital.
• D) the optimal production technique must be capital intensive.

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Definitions:

Traditional Analysis

A conventional method of examination or evaluation, typically based on established techniques that have been widely accepted in a particular field.

Telehealth Therapy

The provision of mental health services and counseling through electronic means, such as video calls, rather than face-to-face interactions.

Face-to-face Interactions

This refers to social interactions that occur in person as opposed to through digital or other non-physical means.

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Behaviors, practices, or norms that are widely approved of and endorsed by a society or social group.