Question: IF the wage goes up, competitive firms will continue using the same ratio of capital to labor if Multiple choice question. output decreases. capital and

IF the wage goes up, competitive firms will continue using the same ratio of capital to labor if Multiple choice question. output decreases. capital and labor are perfect complements. there is no scale effect. both of them are "normal" inputs

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!