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 total product curve shifts downward. b. the average product curve of labor shifts downward. c. the marginal product curve of labor shifts downward. d. all of the above.
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 total product curve shifts downward. b. the average product curve of labor shifts downward. c. the marginal product curve of labor shifts downward. d. all of the above.
Chapter7: Production And Cost In The Firm
Section: Chapter Questions
Problem 3.7P
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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 total product curve shifts downward.
b. the average product curve of labor shifts downward.
c. the marginal product curve of labor shifts downward.
d. all of the above.
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