If the marginal rate of technical substitution of labor for capital (MRTSLK) exceeds the relative price of labor in terms of capital (PL/PK), then
a. the firm's long-run average cost curve is rising.
b. the firm is producing its output at the least possible cost, but the firm should reduce its output level to increase its profits.
c. the firm has increased its output level beyond the point of diminishing marginal returns.
d. the firm needs to use less capital and more labor to reach its expansion path.
d. the firm needs to use less capital and more labor to reach its expansion path.
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In an indifference curve/budget line diagram, at your consumer equilibrium, that is, your best affordable point, which of the following statements is CORRECT?
A) Any movement upward or downward on your budget line will move you to a less preferred point. B) Any movement upward or downward on your indifference curve will move you to a less preferred point. C) Your marginal rate of substitution is greater than the magnitude of the budget line by as much as possible. D) All of the above are correct.
The U.S. is the world's largest creditor
Indicate whether the statement is true or false
Entry and exit drive each firm in a monopolistically competitive market to a point of tangency between its
a. marginal revenue curve and its total cost curve. b. marginal revenue curve and its average total cost curve. c. demand curve and its total cost curve. d. demand curve and its average total cost curve.
How does the theory of efficiency wages explain above-equilibrium wages?
a. Employers are forced by competition to pay higher wages in efficient markets. b. Employers give their workers a higher wage in the hope that it will lead to increased productivity. c. Workers get higher wages when they prove they are increasing their productivity. d. Workers demand higher wages to compensate for poor fringe benefits.