Other things held constant, after some point hiring additional units of labor will cause the marginal physical product of labor to decline because
A) the firm is a price taker.
B) the wage rate increases when additional workers are hired.
C) of the law of diminishing marginal product.
D) the supply of labor is perfectly elastic.
C
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Before it went bankrupt in 2008, Lehman Brothers investment bank had a leverage ratio of 30 which meant it was:
A. highly hedged. B. in debt more than it was worth. C. highly leveraged. D. not very leveraged.
As interest rates rise, more and more investments become profitable for a firm.
Answer the following statement true (T) or false (F)
The Motor Carrier Act of 1980 resulted in:
A. lower freight prices. B. more firms entering the trucking industry. C. lower value of a trucking license. D. All of these are correct.
If velocity were predictable but not constant, would a monetary policy that fixed the growth rate of money work?
What will be an ideal response?