Suppose a technological improvement increases the productivity of a firm's capital and, simultaneously, its workers' union negotiates a wage increase. We can predict that:
A. the firm will use relatively more capital and relatively less labor.
B. the firm will use relatively more labor and relatively less capital.
C. inputs of capital and labor will be unchanged.
D. the firm's equilibrium output will necessarily increase.
Answer: A
You might also like to view...
The optimal strategy of a goalie in penalty kicking is similar to that in a(n) ________
A) zero-sum game B) symmetric game C) extensive-form game D) prisoners' dilemma
The Land Ordinances of 1785 and 1787 accomplished which of the following?
(a) Established the foundation for future American capitalism by permitting land to pass into private hands (b) Allowed the practice of primogeniture or inheritance by the oldest son (c) Permitted land to be treated primarily as a "collective good" (d) Provided for a lateral expansion of American socialism