If the price of labor rises relative to the price of capital, the cost-minimizing ratio of capital usage to labor usage (i.e., the ratio K/L) will

A. be unchanged.
B. decrease.
C. increase.
D. cannot determine without more information


Answer: C

Economics

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The demand for labor curve will shift to the left when the demand for a firm's product decreases

a. True b. False Indicate whether the statement is true or false

Economics