A firm used to produce a product using three units of labor and one unit of capital. The firm discovers that it can produce more output at a lower cost if it combines two units of labor with two units of capital. This is an example of
A. an innovation.
B. increasing returns.
C. economic growth.
D. an invention.
Answer: A
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Refer to the above table. How many workers will this firm hire if the weekly wage rate is $770?
A) 26 B) 27 C) 28 D) 29
When net exports are negative,
a. exports are greater than investment. b. depreciation is greater than net investment. c. imports are greater than investment. d. exports are greater than imports. e. imports are greater than exports.
If two countries have production possibilities curves with different slopes, there is no possibility for gains from trade
a. True b. False Indicate whether the statement is true or false
A tax imposed on the sellers of a good will raise the
a. price paid by buyers and lower the equilibrium quantity. b. price paid by buyers and raise the equilibrium quantity. c. effective price received by sellers and lower the equilibrium quantity. d. effective price received by sellers and raise the equilibrium quantity.