Marginal factor cost is
A. the change in the value of output from using an additional unit of the factor.
B. the cost of using an additional unit of an input.
C. the total value of factor cost divided by the one cost that is being held constant.
D. the cost of an additional unit of output.
Answer: B
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It is possible to purchase diplomas from diploma mills. The situation in which the degrees are more important than the knowledge they are supposed to represent is called:
A. accreditation. B. credentialism. C. cretinism. D. diplomacy.
Explain the capture hypothesis.
What will be an ideal response?
Answer the following questions true (T) or false (F)
1. For a person to have a comparative advantage in producing a product, she must be able to produce that product at a lower opportunity cost than her competitors. 2. It is possible to have a comparative advantage in producing a good or service without having an absolute advantage. 3. If Tanisha can audit more tax returns in one hour than Libby, then Tanisha has an absolute advantage in auditing tax returns.
Without any change in the supply of labor, how are the following events likely to change the equilibrium wage and employment level in a firm that manufactures umbrellas?
a) A forecast of higher rainfall this year b) A decrease in the price of raincoats c) The introduction of labor-saving technology in the factory