In an industry where transportation costs are high and there are limited scale economies,
A) firms will locate close to the market.
B) firms will locate close to their input sources.
C) firms might locate in either area.
D) firms will locate where policy makers decide.
A
You might also like to view...
Customer discrimination occurs when
A) a firm pays workers different wages based on irrelevant factors. B) workers refuse to serve customers of a different race. C) customers refuse to buy products produced by a racially diverse workforce. D) customers refuse to buy products they believe to be of poor quality.
If the consumer's budget constraint is given by 10F + 5S = 100 where F is food and S is shelter, what is the opportunity cost of food in terms of shelter?
A. 2 B. 10 C. 15 D. 5
When one is considering costs of taking a trip in their car, the average cost per mile includes some items of cost that are not included in the marginal cost of a mile driven. This statement is
A. absurd because marginal costs do not apply to mileage costs. B. always false. C. always true. D. sometimes true and sometimes false depending on the circumstances.
Which of the following arguments do the following graphs best support in the context of a skill-biased technical change?
a. The efficiency wage model is correct.
b. A minimum wage increases unemployment.
c. Greater productivity leads to higher wages.
d. Unemployment insurance increases unemployment.