A firm operating in competitive input and output markets purchases new technology, which shifts the total product schedule from A to B, as shown in the data below. At the market wage rate of $30 and product price of $5 this firm will:
A. Hire the same number of laborers in both situations
B. Increase the number of laborers hired from 4 to 6
C. Decrease the number of laborers hired from 4 to 3
D. Increase the number of laborers hired from 4 to 5
D. Increase the number of laborers hired from 4 to 5
You might also like to view...
Before summer 2008, if you wanted a cell phone in Bhutan, you only had one choice: B-Mobile, owned and operated by the government. Then, this past spring, a privately owned competitor, Tashi, was let in
What do you predict will happen to equilibrium price and quantity in the cell phone market? A) Price will decrease and quantity will increase. B) Price will increase and quantity will decrease. C) Both price and quantity will increase. D) Both price and quantity will decrease.
The burden of the debt does not depend on whether debt finance crowds out private investment.
A. True B. False C. Uncertain
Why were traditional Federal Reserve policies ineffective during the 2007-2009 recession?
What will be an ideal response?
Consider a monopoly who posts an economic profit of $10,000,000. All else equal, this monopolist should expect
A) entry into its market, prices to fall, profits to fall. B) no entry into its market, prices to remain the same, profits to remain the same. C) exit from its market, prices to rise, profits to rise. D) entry into its market, the need to increase price, profits to remain the same.