For a firm that uses land, labor and capital as inputs, how should the inputs be utilized in order to minimize total costs?
What will be an ideal response?
Given a particular rate of production, the firm can minimize total costs by hiring each of the three inputs up to the point at which the marginal physical product per last dollar spent on each input is equalized across the three inputs.
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Both the long-run and short-run aggregate supply curves will shift when
A) the endowments of the factors of production change. B) the government increases defense spending. C) an event occurs which is expected to last only a short period of time. D) they are both upward sloping.
Preferences can be described as
A) what a person likes and dislikes. B) the income opportunities of several activities. C) feasible consumption combinations. D) the relative prices of goods and services.
In the United States in 2011, there were 104 fatalities per 100,000 workers in the logging industry. This is the second-highest rate after the fisheries industry
Everything else equal, would you expect workers in the logging industry to be paid higher wages than workers with similar levels of education in other industries? Explain.
Suppose an American worker can make 50 pairs of gloves or grow 300 radishes per day. On the other hand, a Bangladeshi worker can produce 100 pairs of gloves or grow 200 radishes per day. The opportunity cost of one pair of gloves is:
A. 6 radishes for the United States and 2 radishes for Bangladesh. B. 60 radishes for the United States and 20 radishes for Bangladesh. C. 1/6 radishes for the United States and ½ radishes for Bangladesh. D. 6,000 radishes for the United States and 2,000 radishes for Bangladesh.