If the cost of capital increases the isocost line will
A) stay the same.
B) shift outward in parallel fashion.
C) rotate inward around the point where only labor is employed in production.
D) shift inward in parallel fashion.
C
You might also like to view...
The key idea behind price discrimination is to convert consumer surplus into
A) a barrier to entry. B) economic profit. C) deadweight loss. D) monopoly power. E) total cost.
Why are harder forms of liquor produced in "dry" counties in the U.S.?
A) Drinkers in dry counties only prefer liquor to beer and wine. B) Producers only prefer to drink liquor. C) Producers find liquor more efficient to produce, given the rules of the game. D) Trick question: No liquor is produced in "dry" counties.
The above figure shows the market for rice in Japan where price is expressed in dollars. S represents the domestic supply curve, and the horizontal line at P = 1 represents the world supply curve. Suppose a free market exists
If a $1 per unit tariff is imposed on imported rice, the quantity of imported rice will decrease by A) Q1 units. B) Q2 - Q1 units. C) Q2 units. D) Q1 - Q2 units.
If the marginal propensity to consume (MPC) is 0.50, the value of the spending multiplier is:
a. 5. b. 1. c. 2. d. 5.