Suppose that MPL = 50 and MPK = 30. If W = 25 and R = 10, then a firm:
A. is producing its output at the lowest possible cost.
B. could reduce costs by employing more labor and less capital.
C. could reduce costs by employing more capital and less labor.
D. could minimize costs by employing more of both inputs.
C. could reduce costs by employing more capital and less labor.
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Explain how an increase in government expenditure designed to increase aggregate demand can increase potential GDP and aggregate supply
What will be an ideal response?
Leisure is
A) wasteful to society. B) an inferior good. C) a complementary good to labor. D) a normal good.
The Index of Economic Freedom measures the market concentration in an economy
a. True b. False Indicate whether the statement is true or false
Suppose a factory that produces toasters experiences a decline in its average total cost with no change in its output level. This decline might be explained by:
A. economies of scale. B. technological change. C. decreasing marginal utility. D. increasing marginal productivity.