The monopsonistic employer hires more workers until marginal:
a. physical product is zero.
b. revenue product equals marginal factor cost.
c. revenue product equals the wage.
d. physical product equals the wage.
e. physical product equals marginal factor cost
b
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Lizzie's budget line is shown in the figure above. If Lizzie's income increases, her budget line
A) shifts rightward and its slope does not change. B) shifts leftward and its slope does not change. C) becomes flatter. D) becomes steeper.
Other things the same, in the Solow model in the steady state, a higher rate of population growth ________ growth rate of output per worker
A) leads to a higher B) leads to a lower C) has no long-run effect on the D) has an ambiguous effect on the
Suppose capital and labor are perfect substitutes resulting in a production function of q = K + L. That is, the isoquants are straight lines with a slope of -1
Derive the long-run total cost function TC = C(q) when the wage rate is w and the rental rate on capital is r.
If inflation rises more quickly in the United States than in France, U.S. exports to France should rise
a. True b. False Indicate whether the statement is true or false