Given constant returns to scale between labor and output, if it takes 1 hour to make 10 yards of cloth, then 100 yards of cloth can be made in
A) 10 hours.
B) 100 hours.
C) 1000 hours.
D) Can't tell without knowing how much capital is used.
A
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The figure above shows the market for cotton in Georgestan. The government regulates the market with a production quota set at 8 million pounds per year
With the quota in place, the amount of cotton produced in Georgestan is ________ because the marginal social cost of a pound of cotton is ________ the marginal social benefit of a pound of cotton. A) inefficient; less than B) inefficient; greater than C) efficient; less than D) efficient; equal to
If the consumer price index (CPI) in Year X was 300 and the CPI in Year Y was 325, the rate of inflation for Year Y was:
a. 325 percent. b. 25 percent. c. 5 percent. d. 8 percent.
A monopoly exists when there is only one producer in an industry, and no close substitutes for the product exist
a. True b. False Indicate whether the statement is true or false
Suppose political unrest in a major oil producing country leads to a reduction in the supply of crude oil, a resource used to produce gasoline. If the government fixes the price of gasoline in order to prevent price gouging, which of the following will result?
a. The supply of gasoline will increase, because suppliers still need to sell gas. b. The demand for gasoline will decrease, because consumers will curb consumption at the fixed price. c. A shortage of gasoline will occur, because at the fixed price consumers will not have incentive to decrease consumption. d. Everyone will be able to purchase the desired amount of gas, because at the fixed price both sellers and buyers will carry on business as usual.