The following is true about point A for a firm with the I1 isocost curve. 
A. Labor has a lower marginal product than capital.
B. The firm is minimizing the costs of production.
C. Capital is relatively more expensive than labor.
D. All of the choices are true.
Answer: B
You might also like to view...
What is the annual rate of growth of per capita real GDP if real GDP grows at a constant rate of 4 percent per year and the annual rate of population growth is 3 percent?
A) 1 percent B) 3 percent C) 87 percent D) 4 percent
The Ricardian equivalence theorem suggests that an increase in the government budget deficit created by a tax cut will
A) decrease real Gross Domestic Product (GDP) in the short run, but increase it in the long run. B) decrease real Gross Domestic Product (GDP) in both the short and long run. C) increase real Gross Domestic Product (GDP) in both the short and long run. D) have no effect on aggregate demand.
Refer to the scenario above. If the colleagues had decided on a fairness penalty of $5,000 before committing the crime, ________
A) this game will not have a Nash equilibrium B) this game will have multiple Nash equilibria C) this game will have multiple dominant strategy equilibria D) this game will have a unique Nash equilibrium
Which of the following gives the Fed a credibility problem because the Fed may change its planned policies in light of new economic developments?
a. Adaptive expectations b. Time inconsistency c. Wage expectations d. Disinflation e. Rational expectations