To model the input decisions for a production system, we plot labor on the horizontal axis and capital on the vertical axis. In the short run, labor is a variable input and capital is fixed
The short-run expansion path for this production system is: A) a vertical line.
B) a horizontal line.
C) equal to the 45-degree line from the origin.
D) not defined.
B
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The interest rate in the federal funds market:
a. is determined by the imposition of price controls imposed by the Fed. b. rises when the quantity of funds demanded by banks seeking additional reserves exceeds the quantity supplied by banks with excess reserves. c. will fall if the Fed sells bonds and, thereby, reduces the reserves available to banks. d. is an interest rate that is largely unaffected by the policies of the Fed.
Which of the following changes would probably not lead to an increase in aggregate expenditure?
a. an increase in aggregate wage income b. an increased mood of optimism about the nation's economic prospects c. an increase in the value of corporate stocks d. a decrease in the income tax rate e. an increase in the interest rate
Which statement is true?
A. Because they are the only seller in the industry, the monopolist does not have to lower their price to sell more output. B. Most firms in the United States are monopolies. C. Unlike the perfect competitor, the monopolist does not necessarily produce at that output where MC = MR. D. None of these statements are true.
Recall the Application about running a software programming business to answer the following question(s).If you have $10,000 to start a software development business, the interest rate is 4 percent, your cost of your computer is $5,000, and the earnings you sacrifice from working at another job are $32,000, your yearly cost of doing business would be:
A. $47,000. B. $47,400. C. $37,400. D. $37,000.