For given input prices, isocosts closer to the origin are associated with:
A. lower costs.
B. higher costs.
C. initially lower, then higher costs.
D. the same costs.
Answer: A
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Fixed costs are:
A. costs that depend on the quantity of output produced. B. costs that don't depend on the quantity of output produced. C. inputs costs that stay the same price per unit. D. costs that are negotiated to stay the same throughout the life of a contract.
Since 1994 the number of people on the welfare rolls has
A. risen substantially. B. risen slightly. C. stayed about the same. D. fallen substantially.
The structural unemployment rate is 2.3 percent, the frictional unemployment rate is 2.4 percent, and the economy's current unemployment rate is 4.1 percent. The economy is in
A) a recessionary gap producing less than Natural Real GDP. B) an inflationary gap producing more than Natural Real GDP. C) long-run equilibrium. D) an inflationary gap producing Natural Real GDP. E) a recessionary gap producing more than Natural Real GDP.
Suppose the market for pizza makers is initially in equilibrium, but then the equilibrium wage rate increased and the equilibrium quantity of labor will decreased. What happened in the market for pizza makers?
A) The demand for pizza makers increased. B) The demand for pizza makers decreased. C) The supply for pizza makers decreased. D) The supply for pizza makers increased.