For this question, assume that there are decreasing returns to capital, decreasing returns to labor, and constant returns to scale. Now suppose that both capital and labor decrease by 5%. Given this information, we know that output (Y) will
A) not change.
B) decrease by less than 5%.
C) decrease by 5%.
D) decrease by more than 5% but less than 10%.
E) none of the above
C
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The table above shows the marginal private benefit, marginal social benefit, and marginal cost of education at the College of Epsilon. What is the tuition that will make the number of students equal to the efficient number?
A) $400 B) $800 C) $2,800 D) $3,200
With cheaper communication technology and easy flow of information between countries,
a. industrial production becomes more labor intensive. b. the pattern of employment and production can change. c. the digital divide widens. d. transaction costs increase.
The Robinson-Patman Act of 1936:
A. prohibited selling products at "unreasonably low prices" with the intent of reducing competition. B. made it illegal to monopolize a market. C. repealed the Sherman Act. D. outlawed price discrimination for the purpose of reducing competition.
The profit-maximizing level for all firms, regardless of industry structure, is the output level where
A. P = MC. B. ATC = P. C. TR = MC. D. MC = MR.