Marginal factor cost is
A) the change in the value of output from using an additional unit of the factor.
B) the cost of an additional unit of output.
C) the total value of factor cost divided by the one cost that is being held constant.
D) the cost of using an additional unit of an input.
D
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If two goods have a cross elasticity of demand of -2, then when the price of one good increases, the demand curve of the other good
A) shifts rightward. B) shifts leftward. C) remains unchanged and the supply curve also remains unchanged. D) might shift rightward, leftward, or remain unchanged. E) remains unchanged but the supply curve shifts leftward.
A changes in which of the following shifts the demand curve for hamburgers?
A) an increase in the price of the meat used to produce hamburgers B) an increase in the price of a hamburger C) a fall in the price of french fries, a complement for hamburgers D) an increase in the number of hamburger restaurants
The principle of diminishing marginal utility states that:
A. you enjoy consuming more of a good if it is good. B. as you consume more of a good, you enjoy the additional units more than you did the initial units. C. you don't enjoy consuming more of a good. D. as you consume more of a good, you enjoy the additional units less than you did the previous units.
When economists describe a production process as capital-intensive, they mean that the
A. Process uses a high ratio of machinery and other capital to labor. B. Process needs a greater emphasis on labor in order to increase productivity. C. Capital used in the process tends to wear out (depreciate) very rapidly. D. Capital used in the process reflects the most advanced technology.