A firm's optimal input proportions may change if
a. input prices change.
b. the relative marginal productivities of the inputs change.
c. the firm's optimal output level changes.
d. All of the above are correct.
d
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If the economy is on the LM curve, but is to the left of the IS curve, aggregate output will ________ and the interest rate will ________
A) rise; rise B) rise; fall C) fall; rise D) fall; fall
The U.S. government incurred a national debt for the first time during
A. The Revolutionary War. B. Ronald Reagan's presidency. C. World War II. D. The Great Depression.
When the money market is drawn with the value of money on the vertical axis, if the price level is below the equilibrium level, there is an
a. excess demand for money, so the price level will rise. b. excess demand for money, so the price level will fall. c. excess supply of money, so the price level will rise. d. excess supply of money, so the price level will fall.