As the capital-labor ratio increases, break-even investment

A) increases at a decreasing rate.
B) increases at an increasing rate.
C) increases at a constant rate.
D) remains unchanged.


C

Economics

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At any point on the LM curve

a. there is labor market equilibrium. b. money supply equals money demand. c. equilibrium output equals potential output. d. both commodity and money market are necessary for equilibrium. e. both b and c.

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Most consumers in stores use marginal analysis to make their buying decisions.

Answer the following statement true (T) or false (F)

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Company towns are often decried as monopsonists. Why was it unlikely that another employer would move into a company town?

A) The marginal workers available in the company town had low marginal revenue product. B) The existing monopsonist had a first-mover advantage. C) The marginal workers available in the company town would demand a wage higher than that obtained at the existing monopsonist. D) Any of the above.

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Externalities consist of ____________________.

A. Only external costs B. Only external benefits C. Both external costs and external benefits D. None of these answers are correct.

Economics