A firm is using a single variable input, labor, with a given amount of a fixed input, capital. If the level of capital is decreased,

A. the average product curve of labor curve shifts downward.
B. the total product curve of labor curve shifts downward.
C. the marginal product curve of labor shifts downward.
D. all of the above
E. none of the above

Answer: D

Economics

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Indicate whether the statement is true or false

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Which of the following would be a useful way to increase the saving rate?

A) Tax breaks to increase the real return that savers receive B) Increasing taxes if Ricardian equivalence holds C) Increasing government spending D) Increasing taxes on capital goods

Economics