A firm's isocost line shifts parallel inward from the original isocost line as its
A. total cost for capital and labor increases.
B. total cost for capital increases and its total cost for labor decreases.
C. total cost for capital decreases and its total cost for labor increases.
D. total cost for capital and labor decreases.
Answer: D
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Sellers are sure the demand for their product is relatively inelastic at the price currently being charged
A) could increase their net revenue by raising the price. B) could increase their total revenue by lowering the price. C) would decrease their net revenue if they raised the price. D) would decrease their total revenue if they raised the price.
Physicians salaries increased substantially over the decade 1995-2005 from an average of $215,000 to $315,000 . What is the best explanation for this?
a. Physicians were smarter in 2005 than in 1995. b. The supply of physicians has increased. c. The supply of physicians has decreased. d. The demand for physicians has increased. e. The demand for physicians has decreased.
A payment of $10,000 is to be made in the future. The interest rate 3%. Is this payment worth more if it is paid in 5 years or 10 years? How much more is it worth?
A country's actual output ________ its potential output.
A. is always be approximately equal to B. can only temporarily exceed C. can never fall below D. can never exceed