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BrendanOO7 BrendanOO7
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6 years ago
Consider a firm using three inputs: unskilled labor, skilled labor, and capital.  Unskilled labor and capital are substitutes in production, while skilled labor and capital are complements in production.  If the price of capital decreases, then
A) employment of skilled labor increases and employment of unskilled labor decreases.
B) employment of both skilled and unskilled labor decreases.
C) employment of skilled labor increases but the effect on employment of unskilled labor is ambiguous.
D) employment of skilled labor could increase or decrease and the employment of unskilled labor definitely decreases.
Textbook 
Modern Labor Economics: Theory and Public Policy

Modern Labor Economics: Theory and Public Policy


Edition: 12th
Authors:
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alanialani
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6 years ago
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BrendanOO7 Author
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6 years ago
You make an excellent tutor!
hmonier
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Yesterday
Brilliant ツ
Gorgio_De
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2 hours ago
I appreciate what you did here, answered it right Smiling Face with Open Mouth
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