Suppose that each worker must use only one shovel to dig a trench,and shovels are useless by themselves.In the long run,an increase in the price of shovels will result in
A) fewer shovels being purchased to produce the same number of trenches.
B) more workers being hired to produce the same number of trenches.
C) the firm wishing to produce more trenches.
D) no change in the firm's input mix.

Question

Quizplus · Accepted Answer

In the long run, since each worker requires one shovel and shovels are useless by themselves, the firm cannot change the input mix without affecting production. Therefore, an increase in the price of shovels will not change the firm's input mix.

Suppose That Each Worker Must Use Only One Shovel to Dig