An L-shaped isoquant
A) is impossible.
B) would indicate that the firm could switch from one output to another costlessly.
C) would indicate that the firm could not switch from one output to another.
D) would indicate that capital and labor cannot be substituted for each other in production.
E) would indicate that capital and labor are perfect substitutes in production.
D
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You notice that the price of orange juice at your local grocery store has increased. Which of the following statements is not a possible explanation for the rise in the price of orange juice? a. Frosty weather destroys oranges causing the price of oranges to increase
b. As a result of an increase in income, consumers wish to purchase more orange juice at every price level. c. A recent scientific study is reported in the press that suggests that apple juice may be contaminated with pesticides. d. Due to the bioengineering of orange trees, the domestic supply of oranges increases.
The observed change in the reserves of copper, lead, and zinc between 1960 and 1990 was most likely caused by
a. low prices discouraging exploration for new reserves. b. a slowdown in demand growth. c. high prices that stimulated exploration. d. the discovery of substitutes.
When there is only a weak link between work effort and reward
a. individuals will undertake fewer projects that create income. b. taxing the rich and distributing the money to the poor becomes the best way to increase the size of the economic pie. c. corporations will profit more. d. individuals have a strong incentive to undertake projects that generate income.
The Malthusian theory is most applicable today to the _____ countries.
Fill in the blank(s) with the appropriate word(s).