If capital is measured on the vertical axis and labor is measured on the horizontal axis, the slope of an isoquant can be interpreted as the
A) rate at which the firm can replace capital with labor without changing the output rate.
B) average rate at which the firm can replace capital with labor without changing the output rate.
C) marginal product of labor.
D) marginal product of capital.
A
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Market equilibrium
i. can never occur because there are always people who want a good but cannot afford it. ii. occurs at the intersection of the supply and demand curves. iii. is the point where the price equals the quantity. A) ii only B) iii only C) ii and iii D) i only E) i and ii
By differentiating their products and promoting brand name loyalty, monopolistically competitive firms can raise prices without losing all their customers
a. True b. False Indicate whether the statement is true or false
Which of the following items used to produce a product is a capital item?
A. Raw materials B. Land C. Machinery D. Labor
Economists who believe in activist policymaking argue that
A. only planned changes in the money supply impact the economy. B. decreases in aggregate demand definitely impact the economy in the short run. C. decreases in aggregate demand impact the economy only in the long run. D. only increases in the minimum wage levels improve economic well-being.