Question:

As a firm subsitutes labor for capital, more labor is required to rqual one less unit of capital because:?

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A- as less capital is used, diminishing returns to labor become more pronounced

B- diseconomies of scale

C- capital is always more productive than labor

D- the price of each input changes

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2 ANSWERS


  1. A- as less capital is used, diminishing returns to labor become more pronounced


  2. I would ask your economics teacher to rephrase this qestion because as it is it makes no sense.

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