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14. A firm is currently cost-minimizing using capital (K) and labor (L) and has a production process that is efficient, strictly convex, and displays strict
14. A firm is currently cost-minimizing using capital (K) and labor (L) and has a production process that is efficient, strictly convex, and displays strict free disposal. To produce a given output level, how many of the following could cause the firm to use fewer employees, assuming we are at an interior optimum? The price of capital increases The price of labor increases . The marginal productivity of labor increases while the marginal productivity of capital stays the same . MRTS , increases A. 1 B. 2 C. 3 D. 4 E. None of the above could cause the firm to use fewer employees
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