In the specific factors model, a country's production function is ________ because of ________
A) a straight line; diminishing marginal returns
B) a curved line; diminishing marginal returns
C) a straight line; constant marginal returns
D) a curved line; constant marginal returns
E) a curved line; a limited supply of labor
B
You might also like to view...
Every time you go to the grocery store, you try to wait in the shortest line. But the lines always seem to be roughly the same length. Why?
A. The cashiers work at the same speed. B. Other people are trying to choose the shortest line too. C. Random chance equalizes the length of the lines. D. The cashiers do not have an incentive to work faster.
The opportunity cost of capital owned by the firm should reflect
A. the return foregone by using the capital rather than renting it to another firm. B. acquisition cost. C. wage rate differences. D. both a and b
Donnie's Donuts incurs $450,000 per year in explicit costs and $200,000 in implicit costs. The bakery earns $800,000 in revenues and has $2 million in net worth. Based on this information, what is the accounting profit for Donnie's Donuts?
A) $150,000 B) $350,000 C) $600,000 D) $1.2 million
If the price of the product produced by labor increases, the marginal revenue product of labor curve will
A. shift to the left. B. be unaffected because productivity of labor has not changed. C. shift to the right. D. become more elastic.