If the MRP of land is less than its price, a firm should
A. use more land.
B. use less land.
C. increase the price it is willing to pay for land.
D. try to decrease the productivity of land.
Answer: B
You might also like to view...
Except for recessions, the duration of unemployment for the typical person lasts
A) less than six months. B) six to nine months. C) over nine months. D) over one year. E) over five years.
The South's post-Civil War (1861–1865) backwardness was due to all of the following, according to Hughes and Cain (2011), except
(a) Extensive wartime destruction of life and wealth (b) The fiscal disaster of the Confederacy, whereby nine-tenths of the state banks of the South vanished (c) The price of cotton, which did not fall, but did fail to increase as it had prior to the Civil War (1861–1865), thus turning cotton into a less profitable crop (d) The sharecropping system's failure to provide incentives for innovation in agriculture
For players in a repeated-play game to achieve cooperation:
A. the players must reach an explicit agreement to cooperate. B. the players need not explicitly state an agreement to cooperate, but must publicly display a commitment strategy. C. there is no need to enter into public commitment strategies or explicit agreements. D. there is no need for players to collude.
Which of the following statements regarding the cheap foreign labor argument is correct?
A. If there is an abrupt change in foreign competition that severely penalizes American workers, the U.S. government should immediately adopt protectionist measures. B. In the long run, labor will be cheap (wages are low) in those nations where labor is most productive. C. If workers in other countries are willing to supply their products with little compensation, this must ultimately raise the standard of living of the average American worker. D. American workers can never suffer from foreign competition since our monetary and fiscal policies always produce high employment at home.