If Capital and Labor Are Complementary Inputs and the Firm

question 95

Multiple Choice

If capital and labor are complementary inputs and the firm increases the amount of capital employed in production, the marginal revenue product of labor will

• A) decrease.
• B) increase.
• C) remain constant because the amount of labor was not changed.
• D) either increase, decrease or remain constant depending on how complementary labor and capital are in production.

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