Suppose MPL = 0.5 ? (q/L) and MPK = 0.5 ? (q/K). In the long run, the firm will hire equal amounts of capital and labor
A) all of the time.
B) only when w = r.
C) only when w = 0.5 ? r.
D) at no point in time.
B
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Suppose a Big Mac costs $4.20 in the United States and 9.55 zlotys in Poland. If the exchange rate is 2.77 zlotys per dollar, purchasing power parity predicts that
A) the dollar is undervalued. B) the zloty is undervalued. C) the zloty is overvalued. D) both the dollar and the zloty are undervalued.
The Dodd-Frank bill led to the financial meltdown of 2008
Indicate whether the statement is true or false
An entrepreneur is best described as
a. someone that is hired to work in a firm b. someone who creates human capital c. someone with the ability to combine other resources in a productive enterprise d. anyone who owns productive enterprise e. anyone who produces long-lived physical capital
We can increase the United States' rate of economic growth by
A. devoting more output to capital goods. B. devoting more output to improving our technology. C. devoting more output to improving the quality of our labor force. D. all of the choices are true.