The elasticity of demand for labor will be less the
A) longer the time period.
B) easier it is to substitute one input for another.
C) less the demand elasticity for the final product.
D) larger the share of total costs accounted for by labor.
C
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Earth Movers & Shakers operates 3 iron ore mines. The table below shows each mine's total daily production and the current number of miners at each mine. All miners work for the same wage, and each miner in any given mine produces the same number of tons per day as every other miner in that mine. Total TonsPer DayNumber ofMinersMother Lode10025Scraping Bottom3010Middle Drift7515Suppose Earth Movers & Shakers needs to fill an order for 60 tons of ore in a single day. If it has no other orders for that day, it should:
A. take 30 tons from Scraping Bottom and 30 tons from Middle Drift. B. take it all from Middle Drift. C. take 20 tons from each of the three mines. D. take it all from Mother Lode.
A decrease in the interest rate will: a. increase the amount of money supplied by lenders
b. decrease the amount of money supplied by lenders. c. have no effect on the amount of money supplied by lenders. d. have an ambiguous effect on the amount of money supplied by lenders.
The effect of an import quota is to
A. raise the price and reduce the quantity of imports. B. raise the price and the quantity of imports. C. lower the price and the quantity of imports. D. raise the quantity and reduce the price of imports.
If the market price is $40 in a perfectly competitive market, the marginal revenue from selling the fifth unit is
A) $8. B) $20. C) $40. D) $200.