If technological change is factor neutral, then the firm's isoquants:
A. shift out away from the origin.
B. shift in toward the origin.
C. do not change in appearance.
D. become flatter.
C. do not change in appearance.
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Suppose Orange Inc sells MP3 players and initially has monopoly power because there are only a few close substitutes available to consumers
As more types of MP3 players are introduced into the market, the demand facing Orange becomes ________ elastic and the Lerner index achieved by the firm in this market ________. A) less, declines B) less, increases C) more, declines D) more, increases
The term stagflation refers to:
a. a simultaneous reduction in output and the price level b. a simultaneous increase in output and the price level. c. a decline in the price level accompanied by increases in real output and employment. d. an increase in the price level accompanied by decreases in real output and employment. e. a simultaneous increase in both the trade deficit and the budget deficit.
The production function of a firm illustrates the relationship between the amount of labor hired and output
a. True b. False Indicate whether the statement is true or false
If the price of computers decreases, then the:
A. sales of a substitute, such as a telephone, increase. B. sales of a substitute, such as a telephone, decrease. C. inventory of computer software increases. D. inventory of computers increases.