A firm will use more and more land until the marginal revenue product of land
A. rises to the level of the rent.
B. falls to the level of the rent.
C. rises above the level of the rent.
D. falls below the level of the rent.
B. falls to the level of the rent.
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In the national income accounts, government expenditure on goods and services refer to those purchases made by
A) federal and state governments only. B) the federal government only. C) state and local governments only. D) all levels of government.
New classical macroeconomists believe that
a. markets clear each and every period. b. the labor market does not clear. c. individuals are locked into money wage constraints. d. individuals face market constraints in their ability to act in their own self-interest. e. none of the above.
In the Mundell-Fleming model, regardless of whether the economy has perfect capital mobility or not, an increase in the money supply
a. reduces interest rates . b. increases income. c. decreases the trade balance. d. increases capital inflows.
Refer to the above figure. Demand will be unit-elastic when quantity is between
A) 0 and A. B) 0 and B. C) A and B. D) B and C.