Question: All else the same, if a firm revises its production process to use more labour and less machinery, the firm will have: I. An increased

All else the same, if a firm revises its production process to use more labour and less machinery, the firm will have:

I. An increased capital intensity

II. An increased degree of operating leverage.

III. Smaller changes in OCF for a given change in sales quantity.

A) I only

B) II only

C) III only

D) II and III only

E) I, II, and III

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