The input-substitution effect associated with an increase in the wage implies that as the wage increases, a firm will substitute other inputs for the relatively expensive labor.
Answer the following statement true (T) or false (F)
True
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A society’s decision to produce more tanks may require it to reduce the production of some cars.
Answer the following statement true (T) or false (F)
Suppose a 10-mile taxi ride costs £6.50 in London and $10.00 in Los Angeles. If the exchange rate is £1 = $1.70 purchasing power parity holds
a. True b. False Indicate whether the statement is true or false
For a firm operating in a perfectly competitive industry:
A.) an improvement in technology will reduce marginal cost. B.) an improvement in technology will shift the firm and industry supply curve to the left. C.) controlling the market price is easily achievable. D.) Both A and B are true.
In the above table, the average product of the fifth worker is
A. 135. B. -5. C. 35. D. 27.