In the linear breakeven model, the relevant range of output is that range where the linearity assumptions of the model are assumed to hold
a. true b. false
a
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Labor unions are restrained in their wage demands because
A. most unions deal with employers who have superior bargaining power. B. marginal wage cost curves lie above labor supply curves in most labor markets. C. legislation limits annual increases in nominal wages to 6%. D. the labor demand curve is downward-sloping.
Each point on a production possibilities frontier requires full employment of resources
a. True b. False
Distinguish the short run from the long run. Generally, what causes costs of production to vary with output in the short run? What generally causes costs of production to vary in the long run?
Using two carefully-labeled diagrams, explain how MPL and APL can be derived from a firm's production function. In your answer, explain the relationship between average and marginal product.
What will be an ideal response?