All else constant, as the price of petroleum increases relative to the prices of other inputs to the production process, in their effort to minimize their total costs of production, we can expect to see firms employ:
A) less of each of the inputs of production.
B) more petroleum and less of the other inputs to production.
C) less petroleum and more of the other inputs to production.
D) the same amount of petroleum since there are no substitutes for petroleum.
C
You might also like to view...
Give an example of a positive economic statement and a normative economic statement
What will be an ideal response?
The highest tariff rates of the twentieth century in the United States arose as a result of which law?
A) the Robinson-Patman Act B) the Tariff of Abominations Act C) the Wheeler-Lea Act D) the Smoot-Hawley Act
The problems faced by oligopolies with three or more members are entirely different from the problems faced by duopolies
a. True b. False Indicate whether the statement is true or false
If the price buyers pay doesn't change at all, the burden...
What will be an ideal response?