If a firm adopts a labor-saving piece of technology, it will:
A. decrease the marginal supply of labor.
B. decrease the marginal product of labor.
C. increase the marginal product of labor.
D. increase the marginal supply of labor.
Answer: B
You might also like to view...
Frozen Treats and Dairy Treats are two ice cream firms that are competing with each other. If Frozen Treats announces an upcoming price change next month, it may be signaling to Dairy Treats its intent to engage in ________.
A) a Cournot oligopoly B) tacit collusion C) a Chamberlin oligopoly D) a Stackelberg oligopoly
What happens in a perfectly competitive industry when economic profit is greater than zero?
A) Existing firms may get larger. B) New firms may enter the industry. C) Firms may move along their LRAC curves to new outputs. D) There may be pressure on prices to fall. E) All of the above may occur.
Mary and Jane are partners in a business. Their business is growing but has not yet reached the point where they can afford a new delivery truck. Jane owns an old truck that she has not been using. She decides to donate it to their business for free
A) This transaction (donation) involves no economic cost. B) This transaction involves both economic cost and accounting cost. C) This transaction involves economic cost but no accounting cost. D) This transaction involves no economic cost and no accounting cost.
Refer to Figure 7.6. Which graph represents decreasing returns to scale?
A. A
B. B
C. C
D. Both graph A and graph C