Refer to Figure 8.1. Holding other variables constant, a decrease in the capital stock will result in a
A) shift from curve D1 to curve D2.
B) shift from curve D2 to curve D1.
C) movement from point A to point B.
D) movement from point B to point A.
B
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The absolute price elasticity of demand would be the lowest for
A) automobiles. B) Pizza Hut pizza. C) salt. D) movie tickets.
Which of the following is true?
a. A fall in a good's price leads to a decrease in quantity demanded, illustrated by moving along a demand curve. b. According to the law of demand, other things equal, when the price of a good or service falls, demand increases.c. A change in demand for chocolate bars is caused by a change in the price of chocolate bars d. None of the above is true.
Which of the following statements is true about profit-related income? a. It results from hiring workers below the marginal contributions they make to the enterprise
b. It consists of rents derived from the sole ownership of capital. c. It is the reward for undertaking the uncertainties of enterpreneurship. d. It equals the entrepreneur's opportunity costs of labor and money capital. e. It is the same as wage-related rents, except it is the entrepreneur who gets it.
Setting price equal to marginal cost in a natural monopoly will lead to
A. excess profits for the firm. B. losses for the firm. C. zero profits for the firm. D. One cannot tell without further information.