If the price of labor rises relative to the price of capital, the cost-minimizing ratio of capital usage to labor usage (i.e., the ratio K/L) will
A. be unchanged.
B. decrease.
C. increase.
D. cannot determine without more information
Answer: C
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Which one of the following is an example of a positive statement?
A) Farmers need some type of government aid. B) State governments should provide economic assistance to farmers. C) The federal government should provide economic assistance to farmers. D) The amount of financial assistance given to farmers is higher this year than it was 10 years ago.
Virginia's Ham Company is currently employing 100 workers at a wage of $6 per hour. The firm produces 30 hams that sell for $12 each. The total labor cost per hour is
a. $180 b. $360 c. $600 d. $1,200 e. $3,000
Distinct from any other market structure, the firm in long-run perfect competition ends up producing where
a. P = MR = MC = ATC, and AFC = 0 b. P > MR = MC = ATC, and AFC = 0 c. P < MR = MC < ATC, where ATC = (AFC + AVC + MC) d. P = MR = MC = ATC, where ATC = (AFC + AVC) e. P > MR and ATC > MC, where MC = (AFC + AVC)
The demand for labor curve will shift to the left when the demand for a firm's product decreases
a. True b. False Indicate whether the statement is true or false