Suppose our firm produces chartered business flights with capital (planes) and labor (pilots) in fixed proportion (i. e. one pilot for each plane). if the wage rate paid to the pilots increases relative to the rental rate of capital for the airplanes, then? explain your answer.
a. optimal capital labor ratio should increase.
b. optimal capital labor ratio should decrease.
c. optimal capital labor ratio remains the same
d. not enough information to answer question

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

eds? ederal government or feds

answer: a. the kind of population living in your neighbourhood.

the census explorer data tool by the us census bureau allows the user to zoom in on any neighbourhood within the united states and find the kind of people residing in that by race and age.  

the tool needs to needs to be used twice – once in order to find what type of people reside in a neighbourhood, and then to see the age groups of the people in the same neighbourhood.