If Laborers Become More Efficient Over Time, and If Company

question 60

Multiple Choice

If laborers become more efficient over time, and if Company X would want to expand production, it would

• A) substitute capital for labor.
• B) hire more laborers.
• C) hire fewer laborers.
• D) produce less product.

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Definitions:

Electricity Consumption

The total amount of electric power used by consumers within a specific period.

Perfectly Elastic

Describing a situation where the quantity demanded or supplied responds infinitely or by an unlimited amount to a change in price.

Horizontal Line

A straight line on a graph that runs parallel to the x-axis, indicating a constant value.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in its price, indicating the sensitivity of consumers to price changes.