Demand for the product of an industry in perfect competition is assumed to be inelastic.
Answer the following statement true (T) or false (F)
False
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If a firm uses only capital and labor as inputs, then what should the firm do at a given rate of production if the marginal physical product of labor per last dollar spent is higher than the marginal physical product of capital per last dollar spent
A) The firm should increase both the quantity of capital and the quantity of labor. B) The firm should decrease both the quantity of capital and the quantity of labor. C) The firm should increase the quantity of capital and reduce the quantity of labor. D) The firm should decrease the quantity of capital and increase the quantity of labor.
Import quotas have a negative impact on poor nations because they make it difficult for poor nations to
A. Receive foreign aid from rich nations. B. Sell agricultural goods to each other. C. Sell agricultural goods to rich nations. D. Develop a pro-business environment.
Alcoa had a monopoly in the U.S. aluminum market from the late nineteenth century until the end of World War II. Which barrier to entry was the source of Alcoa's monopoly power?
A. ownership of a vital resource B. government franchises and licenses C. patents and copyrights D. economies of scale
According to the story, if __________ in the software and related services sector increases by $15 billion, real GDP will increase by __________
a) investment; $30 billion b) consumption; $30 billion c) consumption; $2 billion d) investment; $2 billion