At the XYZ Co, a unit of capital costs three times as much as a unit of labor. If the isoquants are convex, and the firm does not change its input mix in the long run, we can conclude that
A) MPK = 3 ? MPL .
B) the firm will not hire any capital.
C) the firm will hire 3 times as much labor as capital.
D) the firm will hire 3 times as much capital as labor.
A
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A) relative advantage. B) the production possibilities curve. C) absolute advantage. D) the division of labor.
The demand curve for a product will shift rightward when the price of a substitute decreases
a. True b. False
"The money and resources currently being devoted to the War on Terrorism reduces the quantity of other goods that we are able to supply." This statement most clearly illustrates which of the following?
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Since the Civil War, the poorest section of the country has been the __________.
Fill in the blank(s) with the appropriate word(s).