If the supply of another input used decreases, the marginal product of labor can:
A. increase, decreasing the demand for labor.
B. increase, increasing the demand for labor.
C. decrease, increasing the demand for labor.
D. increase, increasing the supply of labor.
B. increase, increasing the demand for labor.
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An assumption behind the infant-industry argument for tariff protection is that
A) foreign competitors are selling output below average cost. B) the domestic industry will be facing an upward adjustment in its average cost. C) the domestic industry will eventually gain a comparative advantage in producing the good. D) the market needs additional competition to satisfy consumer demand.
A production possibilities frontier (PPF) is characterized by increasing opportunity costs when
a. the PPF is a straight line b. the PPF is bowed inward c. the PPF is bowed outward d. increasing opportunity costs do not occur with PPF's
In long-run equilibrium for the monopolistically competitive firm, the equilibrium point
a. at the highest part
b. close to the highest part
c. at the lowest part
d. close to the lowest part
What do sellers do if they expect the price of goods they have for sale to decrease dramatically in the near future?
a. sell the goods now and try to invest the money instead of resupplying b. sell the goods now but try to get the higher price for them c. store the goods until the price rises d. store the goods indefinitely regardless of when the price rises