Assume that the relative prices of capital and labor have not changed. As a firm's expenditures for capital and labor increase, its isocost line
A. rotates outward on the X-intercept.
B. shifts in parallel to the original isocost line.
C. rotates outward on the Y-intercept.
D. shifts out parallel to the original isocost line.
Answer: D
You might also like to view...
Scatterbrain Samantha often forgets to lock her house. This has caused the probability of a burglary to be 30%. If her house gets broken into, she faces a property loss of $10,000, otherwise she gets to keep her $100,000 . What is the minimum price an insurance company could offer (if it had no other costs)?
a. $10,000 b. $3,000 c. $100,000 d. $5,000
Exhibit 19-4 Balance sheet of Tucker National Bank Assets Liabilities Required reserves$ 4,000 Checkable deposits$20,000 Excess reserves16,000 Loans 0 Total$20,000 Total$20,000 Assume all banks in the system started with the balance sheet shown in Exhibit 19-4 and the Fed makes a $1,000 open market purchase. The result would be a(n):
A. infinite contraction of the money supply. B. infinite expansion of the money supply. C. $1,000 expansion of the money supply. D. $5,000 expansion of the money supply.
Which of the following is an implicit cost to a firm that produces a good or service?
A. Labor costs B. Foregone profits of producing a different good or service C. Costs of operating production machinery D. Costs of renting or buying land for a production site
An example of an import of a service in the U.S. balance of payments would be when
A. a U.S. resident buying insurance from a firm in Toronto. B. a U.S. firm purchases 100 shares of a Dutch firm. C. an U.S. resident purchases a Japanese stereo. D. a Norwegian traveling in the United States rides a trolley car in San Francisco.