Joe's Organic Cereal Company produces granola breakfast cereal under a fixed proportion production system in which 22 ounces of cereal are packaged in each cardboard box
However, the plant production manager decides to reduce the amount of cereal per box to 20.5 ounces at the start of the next year. For the isoquant map, cereal is plotted in the vertical axis, and boxes are on the horizontal axis. What happens to the curves in the isoquant map as a result of this change? A) Shift upward
B) Shift downward
C) Shift rightward
D) Shift leftward
B
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When the housing bubble burst, prices fell particularly severely in
a. Georgia. b. Nevada. c. Pennsylvania. d. West Virginia.
Firms should hire additional units of a resource as long as the
a. marginal product of the resource exceeds the price of the resource multiplied by the quantity of output produced. b. marginal product of the resource is less than the price of the resource. c. price of the output produced is positive. d. marginal revenue product of the resource exceeds the cost of employing an additional unit of the resource.
Compared to their initial positions at points A and B, as a result of complete specialization and trade, the output of the two countries added together in Figure 35.1 would result in an increase in
A. Neither DVD players nor motorcycles. B. Both DVD players and motorcycles. C. Motorcycles only. D. DVD players only.
Excess demand for a specific foreign currency, such as the pound, implies a
A. Capital account surplus for the United States. B. Capital account deficit for the United States. C. Balance-of-payments surplus for the United States. D. Balance-of-payments deficit for the United States.