Refer to Figure 11-13. The lines shown in the diagram are isocost lines. Which of the following shows an increase in the firm's total cost while the price of labor and capital remain unchanged?
A) the movement from CE to AF B) the movement from BD to AF
C) the movement from BD to CE D) the movement from CE to BF
D
You might also like to view...
Consider two individuals: John and Jenna. John has an opportunity cost of time equal to $50 per hour, while Jenna has an opportunity cost of time equal to $25 per hour
Which of the two individuals has a greater incentive to look for work when unemployed?
Zane's Vanes is a service that restores old weather vanes. Zane has just spent $125 purchasing a 1920s-era weather vane which he expects to restore and sell for $500 once the work is completed
After having spent $125, Zane realizes that he will need to spend an additional $200 on materials to complete the restoration. Alternatively, he can sell the weather vane without restoring it for $200. What is his marginal benefit if he sells the weather vane without restoring it? A) $75 B) $125 C) $200 D) $300
Which of the following is not an example of economic regulation?
a. Preventing a firm from starting up in a town. b. Maintaining a minimum price for a good. c. Restricting the use of hazardous materials without proper protection. d. Requiring a minimum amount of goods produced in a given year.
For a number of years Canada and many European countries have had higher average unemployment rates than the United States. The Phillips curve suggests that these countries
a. have higher average inflation rates than the United States. b. have long-run Phillips curves to the right of the United States'. c. may have less generous unemployment compensation or lower minimum wages. d. All of the above are consistent with the evidence on unemployment rates.