Which of the following is true?
a. Automated production processes are generally adopted regardless of whether they reduce costs.
b. Automated production processes eliminate jobs and, thereby, endanger our future living standards.
c. Cost-reducing automated production techniques will expand output directly and/or release scarce resources for the expansion of output in other areas.
d. Use of the most advanced technology will always minimize the cost of a productive activity.
C
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What happens to the budget constraint of the recipient when he receives the $100 cash under Plan A? What is likely to happen to his consumption of both food and "all other goods" if they are both normal goods?
What will be an ideal response?
The weighted average of a firm's expected return on its stock and the interest rate that it pays for debt is known as the:
A) internal rate of return. B) opportunity cost of capital. C) risk-free rate of return. D) company cost of capital.
Indirect price discrimination differs from direct price discrimination because
a. In direct price discrimination high value consumers can sometime enjoy the benefits of a low-values customer b. In Direct price discrimination firms do not have to worry about cannibalizing c. In direct price discrimination there is a risk of creating profitable entries for rival but for indirect price discrimination, this can be avoided d. There is no difference between the two
If price elasticity of supply is large and demand is price-inelastic, then the firm can earn positive profits by increasing the price
a. True b. False Indicate whether the statement is true or false