A straight-line isoquant
A) is impossible.
B) would indicate that the firm could switch from one output to another costlessly.
C) would indicate that the firm could not switch from one output to another.
D) would indicate that capital and labor cannot be substituted for each other in production.
E) would indicate that capital and labor are perfect substitutes in production.
E
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The cost savings associated with the cost-effective solution relative to a uniform standard equals
Suppose that two firms, X and Y, face the following abatement costs: MACX = 1.2AX, MACY = 0.3AY TACX = 0.6AX2 TACY = 0.15AY2 Further assume that the combined abatement standard is 40 units for both firms. a. $300 b. $108 c. $10.8 d. $9.60
The above figure shows Jane's budget line and two of her indifference curves. Which of the following happens to Jane's budget line if there were an increase in her monthly dining-out budget?
A) It would bend toward the origin, becoming more convex. B) It would bend away from the origin, becoming more concave. C) It would shift rightward and not change its slope. D) It would shift leftward and not change its slope.
You have a choice among three options. Option 1: receive $900 immediately. Option 2: receive $1,200 one year from now. Option 3: Receive $2,000 five years from now. The interest rate is 15 percent (0.15) per year. Rank these three options from highest present value to lowest present value
a. Option 1, Option 2, Option 3 b. Option 3, Option 2, Option 1 c. Option 2, Option 3, Option 1 d. Option 3, Option 1, Option 2 e. Option 1, Option 3, Option 2
Refer to the above graph, which shows an aggregate demand curve for a hypothetical economy. If the price level is 150, the quantity of real GDP demanded is:
A. $500 billion. B. $800 billion. C. $600 billion. D. $700 billion.