If a firm hires one worker and eliminates four units of capital, and hires one more worker and replaces three more units of capital, keeping output constant, then
A) workers and capital are perfect substitutes.
B) the firm is operating inefficiently because capital is more efficient than workers.
C) the firm is experiencing a diminishing marginal rate of technical substitution.
D) there are decreasing returns to scale.
C
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An increase in real GDP can shift
A) money demand to the left and increase the equilibrium interest rate. B) money demand to the right and increase the equilibrium interest rate. C) money demand to the right and decrease the equilibrium interest rate. D) money demand to the left and decrease the equilibrium interest rate.
The legislation that separated investment banking from commercial banking until its repeal in 1999 is known as the
A) National Bank Act of 1863. B) Federal Reserve Act of 1913. C) Glass-Steagall Act. D) McFadden Act.
In 2002, there were _____ school districts in the United States
a. fewer than 15,000 b. around 30,000 c. around 45,000 d. more than 60,000
Figure 11-3
In Figure 11-3, which line represents the change in the consumption schedule caused by a cut in fixed taxes?
a.
C1 in graph (a)
b.
C2 in graph (a)
c.
C1 in graph (b)
d.
C2 in graph (b)