Asked by
Jahaun Bailey
on Nov 04, 2024
Verified
Assume that capital and labor are complementary inputs. If the firm increases the amount of capital it employs, this would
A) cause the firm to move down along the MP schedule for labor.
B) cause the firm to move up along its MP schedule for labor.
C) shift the firm's MP schedule for labor to the left.
D) shift the firm's MP schedule for labor to the right.
Complementary Inputs
Inputs or resources that are used together in the production process, where an increase in the usage of one increases the effectiveness or productivity of the other.
MP Schedule
Marginal Product Schedule, a table or graph showing how the marginal product changes as the quantity of a variable input changes.
- Identify how changes in technology or productivity impact production methods.
Verified Answer
LB
Learning Objectives
- Identify how changes in technology or productivity impact production methods.