If the marginal physical product of more labor is twice as high as the marginal physical product of more machinery, a profit-maximizing firm will
a. reduce the labor used and increase the machinery used if labor costs half as much as machinery.
b. reduce the labor used and increase the machinery used if labor and machinery cost the same amount.
c. reduce the labor used and increase the machinery used only if labor costs more than twice as much as machinery.
d. reduce the labor used and increase the machinery used only if labor costs exactly twice as much as machinery.
C
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The figure above shows a local lawn cutting service's demand for labor curve when the price of cutting an acre of lawn is $50 per acre. If the wage rate rises from $100 per day to $200 per day, the firm's demand for labor curve
A) shifts leftward. B) shifts rightward. C) does not shift at all, but the firm moves upward along the curve. D) None of the above because this change shifts the supply of labor curve.
The value of the four-firm concentration ratio that many economists consider indicative of the existence of an oligopoly in a particular industry is
A) anything greater than 10 percent. B) anything greater than 40 percent. C) anything greater than 30 percent. D) anything greater than 20 percent.
All of the following are in-kind benefit programs, except
A. food stamps. B. Medicaid. C. energy assistance. D. SSI.
The unemployment rate measures the: a. number of people in the labor force divided by the adult population
b. percentage of people in the labor force who are unemployed. c. percentage of people in an economy who have dropped out of the labor force. d. number of people in the adult population who are looking for work. e. number of people in the labor force who are not working.