Which of the following formulas measures the rate of substitution for labor with capital?
A. -?L/?K
B. -?K/?L
C. ?K/?L
D. ?L/?K
B. -?K/?L
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All of the following are true of the labor-supply and labor-demand curves intersection except they:
A. only intersect once. B. intersect at the revenue-maximizing quantity for the firms in the market. C. intersect at the equilibrium wage. D. intersect at the profit-maximizing quantity for the firms in the market.
A graph shows the total quantity of zinc that all the zinc producers together are willing to provide at each price. This is an example of a(n) ______.
a. individual supply curve b. market supply curve c. individual demand curve d. market demand curve
Investment occurs when:
a. firms are very profitable and have lots of extra cash on hand. b. there is a reduction in risk-aversion. c. the expected real interest rate is less than the expected real return on the investment project. d. individuals realize that there are greater long-term gains in the equity and credit markets.
If the market equilibrium quantity is greater than the socially optimal quantity, one can infer that:
A. there is a positive externality associated with this good. B. the private demand curve for the activity is below the socially optimal demand. C. there is a negative externality associated with this good. D. the private supply curve for the activity is to the left of the socially optimal supply curve.