You own a business that distributes restaurant menus to houses and apartments. You have an incentive to substitute labor for capital if the
A. price of labor increases.
B. price of labor decreases.
C. marginal product of labor decreases.
D. price of capital decreases.
Answer: B
You might also like to view...
If a firm has developed a very popular chocolate bar recipe, the firm would consider the chocolate bar recipe to be which of the following?
A) a trademark B) a copyright C) a patent D) a trade secret
In which market structure is there the greatest degree of mutual dependence between firm in choosing their price and output policies? a. perfect competition
b. monopolistic competition. c. oligopoly. d. monopoly.
The quantity theory of money states that
A) inflation increases when the money growth rate increases. B) as the price level increases, the demand for money increases. C) as the interest rate rises, the demand for money decreases. D) changes in the quantity of money are determined by the commercial banks and not the Federal Reserve.
If your income increases, what is the effect on your budget line?
What will be an ideal response?