Which of the following statements correctly identifies a difference between labor and land?
A) Land can be rented but not owned by a firm, whereas labor can be rented or owned.
B) Labor can be rented but not owned, whereas land can be rented or owned by a firm.
C) Labor is hired until a point where the marginal product of labor equals the price of labor, whereas land is rented until a point where the average product of land equals the price of land.
D) Labor is hired until a point where the average product of labor equals the price of labor, whereas land is rented until a point where the marginal product of land equals the price of land.
B
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X-inefficiency refers to the situation in which firms with market power are operating in the upward-sloping segment of their long-run average cost curve
Indicate whether the statement is true or false
If the adoption of a new technology led to gains in productivity ________
A) the ensuing positive supply shock would lead to an immediate increase in output B) in the short-run, the ensuing increase in supply would lower inflation C) and if this new technology permanently altered the productive capacity of the economy then the increase in output and decrease in inflation would be permanent as well D) all of the above E) none of the above
A brand name can be a source of market power
Indicate whether the statement is true or false
Which statement is true?
A. Today more workers in the U.S. are members of labor unions than any time in our history. B. Today labor unions are weaker than any time in the last 100 years. C. No major labor union has called a strike since the 1940s. D. Labor unions are relatively strong in the public (government) sector.