Refer to the following graph. The price of labor is $3 per unit:
How many units of labor should a firm use in order to produce 100 units of output at the least cost?
A. 15 units of labor
B. 10 units of labor
C. 5 units of labor
D. 20 units of labor
Answer: B
You might also like to view...
A rent ceiling below the equilibrium rent will create
A) a more efficient allocation of housing. B) a larger number of apartments rented. C) no change in the number of apartments rented. D) increased search time and black markets.
Specialization should be guided
A) by government regulations. B) comparative advantage C) by only technology. D) by only labor or technology.
Which of the following factors will reduce considerably the ability of a union to raise the wages of its workers?
a. an elastic demand for the goods produced by union labor b. a five-year apprenticeship before one can qualify for jobs held by union members c. high tariffs on goods produced by the union labor d. favoritism in the allocation of government contracts to firms that employ union labor
The globalized AS/AD model takes trade into account, while the standard AD/AS model does not.
Answer the following statement true (T) or false (F)