How is capital valued?
What will be an ideal response?
The value of capital is measured by the value of services that it will render the firm over time.
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Assuming all else equal, if the price of each unit of capital rises, ________
A) a firm moves to a higher point along its labor demand curve B) a firm moves to a lower point along its labor demand curve C) a firm's labor demand curve shifts to the left D) a firm's labor demand curve shifts to the right
Which of the following statements about competition in a market is true?
A) Competition forces firms to produce and sell products as long as the marginal benefit to consumers exceeds the marginal cost of production. B) Competition forces firms to undercut their selling price, thus benefiting consumers who will be able to purchase products at the lowest price possible. C) Competition forces firms to add only low profit margins to their costs of production. D) Competition forces firms to outsource the production of their labor-intensive products.
The Organization of Petroleum Exporting Countries (OPEC) controls about 75 percent of the world's proven oil reserves. Economists refer to OPEC as a cartel because
A) it is a group of firms that collude to restrict output to increase prices and profits. B) OPEC is a monopoly, but it is located outside of the boundaries of any one country. This is the definition of a cartel. C) this is the term economists use to describe an oligopoly that sells a standardized product, such as oil, rather than a differentiated product, such as automobiles. D) this is the term used for an oligopoly that is controlled by national governments rather than private firms.
The president of the United States can obtain a court injunction that will stop a strike for an 80-day "cooling-off"period if the strike is expected to imperil national safety or health. This power is granted in the
A) Wagner Act. B) Landrum-Griffin Act. C) National Industrial Recovery Act. D) Taft-Hartley Act.