Assume that the price of labor and capital have remained the same, but that the average educational level of workers has increased and therefore the productivity of labor has increased. This would lead a firm to
A. use only labor to produce the product.
B. use a more capital-intensive production technology.
C. use a more labor-intensive technology.
D. not change its production technology, but to produce fewer units of output.
Answer: C
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The market structure that is characterized by a small number of large firms that have some market power is called:
A) perfect competition. B) monopolistic competition. C) oligopoly. D) monopoly.
A speculator who believes strongly that interest rates will fall would be likely to
A) buy futures contracts on Treasury bills. B) sell futures contracts on Treasury bills. C) sell Treasury bonds in the spot market. D) decrease now the amount of money which he lends.
Launching the simplified version would be a mistake for probabilities less than ___?
a. 0.6 b. 0.7 c. 0.8 d. 1.0
Use the following general linear supply function:Qs = 40 + 6P - 8PI + 10F where Qs is the quantity supplied of the good, P is the price of the good, PI is the price of an input, and F is the number of firms producing the good. Suppose PI = $40, F = 50, and the demand function is Qd = 700 - 6P , then if government sets a price of $30 what will be the result?
A. a shortage of 120 B. a surplus of 120 C. a surplus of 160 D. a shortage of 160