An increase in labor hours will lead to
A) a shift of the aggregate production function but no movement along it.
B) a movement along the aggregate production function but no shift in it.
C) both a movement along and a shift in the aggregate production function.
D) neither a movement along nor a shift in the aggregate production function.
B
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To maximize its profit, in the short run a perfectly competitive firm decides
A) what price to charge for its product. B) what quantity of output to produce. C) whether to exit the market. D) whether to increase the size of its plant. E) how much advertising it should undertake.
The high price of agricultural land is basically
A) the cause of high food prices. B) the result of high food prices. C) unrelated to food prices because processing costs dominate food prices. D) unrelated to food prices because there is no opportunity cost of producing land.
The inflation rate measures the percentage increase in the price level from one year to the next
Indicate whether the statement is true or false
The actual time length of the short run is determined by when diminishing marginal returns start
Indicate whether the statement is true or false