Suppose a firm uses 200 units of capital and 1,000 workers to produce 10,000 units of output. When the firm employs 3,000 workers and uses 600 units of capital, output increases to 45,000 units. This firm exhibits:
A. increasing returns to scale.
B. decreasing returns to scale.
C. constant returns to scale.
D. diminishing marginal returns.
A. increasing returns to scale.
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Jane is a 25-year-old, full-time student. She works part time in her school library and is paid $7 an hour. She is considered to be
A) unemployed. B) not in the labor force. C) in the labor force but not working. D) employed. E) not in the working-age population because she is in college.
Refer to Figure 2-10. If the economy is currently producing at point E, what is the opportunity cost of moving to point B?
A) 26 thousand forks B) 60 thousand spoons C) 0 spoons D) 20 thousand forks
From the information in the above table, calculate the marginal factor cost of the third worker
A) $24.00 B) $36.00 C) $18.00 D) $12.00
The following are obstacles to international investment EXCEPT
A. adverse selection. B. asymmetric information. C. moral hazard. D. rational expectations.