The slope of the isocost line tells the firm how much
A) capital must be reduced to keep total cost constant when hiring one more unit of labor.
B) capital must be increased to keep total cost constant when hiring one more unit of labor.
C) more expensive a unit of capital costs relative a unit of labor.
D) the isocost curve will shift outward if the firm wishes to produce more.
A
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A firm that faces a high-demand period followed by a low-demand period must determine all of the following for peak-load pricing except which one?
A) long-term peak quantity B) long-run capacity C) short-term off-peak price D) short-term peak price
The classical economists felt that wages and prices were flexible in
A) neither the upward direction nor the downward direction. B) the upward direction but not in the downward direction. C) the downward direction but not in the upward direction. D) both the upward and downward directions.
The U.S. did not lapse back into a depression after World War II ended for all of the following reasons EXCEPT
A. a larger role taken on by the federal government. B. pent up demand for housing and automobiles. C. government programs that aided the trend toward suburbanization. D. a return to laissez-faire economic policies.
The small-country monopolist's free-trade equilibrium features a marginal revenue curve equal to __________ and coincident with _____________.
a. marginal cost; the consumer's demand curve for the product b. the world price; the new competitive demand curve for the firm c. one; profits d. imports at each price; the supply curve