The elasticity of resource demand will be greater the:
A. smaller the portion of the product's total costs accounted for by the resource.
B. less the elasticity of demand for the product it is producing.
C. easier it is to substitute other resources in production.
D. less the elasticity of resource supply.
Answer: C
You might also like to view...
The "law of supply" states that, other things remaining the same, firms produce
A) more of a good the less it costs to produce it. B) less of a good the more it costs to produce it. C) more of a good the higher its price. D) less of a good as the required resources become scarcer.
The table above gives production information for Bob's Baseball Cap Company. Bob's total cost when zero caps are produced is $200 and workers cost $10 per hour. The total fixed cost of producing 10 baseball hats per hour is
A) $400 B) $200 C) $22 D) More information is needed to answer the question.
An increase in population shifts the production possibilities frontier inwards over time
Indicate whether the statement is true or false
Linking policy instruments to target variables are the
A) indices of economic welfare. B) structural economic relations. C) exogenous nonpolicy variables. D) irrelevant side effects.