Answer:
C. optimal capital labor ratio remains the same
Explanation:
One pilot for each plane implies A = B
Let cost be C
So, isocost line is xA + rB = C
So, xA + yA = C (as L = K)
So, (x+y)A = C
So, A = C/(x+y) =B
Optimal capital labor ratio = B/A = 1 as B =A
Now, wage rate increases to x'
So, isocost line is x'A + yB = C
So, x'A + yA = C (as A = B)
So, (x'+y)A = C
So, A = C/(x'+y) = B
New optimal capital labor ratio =B/A = 1 as B = A
Thus, optimal capital labor ratio remains same because capital (planes) and labor (pilots) are used in fixed proportion.
Thus the answer is
C. optimal capital labor ratio remains the same
Finance: accountant, loan officer. Marketing, Cargo and Freight Agent - Transportation, Distribution and Logistics.
Preferences ARE BASED ON THE INDIVIDUAL.
Each individual has his or her own preferences. He or she has her own standards when it comes to goods and services. If a person prefers a certain good or service and said good or service is expensive, the person will still buy the good or service because he or she prefers it over others.
Answer:
the study of how society uses it's limited resources