An increase in the marginal cost arising from a more complex specialized investment environment will cause the optimal contract length to:
A. increase.
B. decrease.
C. either increase or decrease.
D. remain constant.
Answer: B
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Economic costs of an input include
A) only implicit costs. B) only explicit costs. C) both implicit and explicit costs. D) whatever management wishes to report to the shareholders.
When a worker has a rare skill or talent, supply in that labor market:
A. is low. B. is high. C. depends on the other factors of production. D. depends on the output produced.
Refer to the given table. Suppose the columns in this table reflect demand and supply. At a price of $50:Price Per UnitColumn A Units Per YearColumn B Units Per Year$2010040$309550$408060$506570$605080
A. there will be an excess supply of 70 units. B. there will be an excess supply of 5 units. C. there will be an excess demand of 5 units. D. the market will be in equilibrium.
Discuss what factors could cause a real depreciation
What will be an ideal response?