An increase in labor productivity shifts the
A) AD curve rightward.
B) AD curve leftward.
C) short-run aggregate supply (SRAS) curve leftward.
D) SRAS curve rightward.
E) none of the above
D
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Examining the conditions that could lead to inflation in an economy is an example of a microeconomics topic
Indicate whether the statement is true or false
Which of the following is most likely to be a fixed input in the short run for Joe's Garage?
a. the grease used to lubricate cars b. the part-time labor employed to repair cars c. the inventory of replacement parts d. the electricity used to heat and light the garage e. the garage used to repair cars
Which type of price is an implicit price of an action whose value is measured in opportunity costs?
A. Shadow B. Equilibrium C. Guaranteed D. Relative
Eric provides cheese (H) and milk (M) to the market with the following total cost function: C(H, M) = 10 + 0.4H2 + 0.2M2. The prices of cheese and milk in the market are $2 and $5 respectively. Assume that the cheese and milk markets are perfectly competitive. What output of milk maximizes profits?
A. 12.5 B. 1.25 C. 15 D. 20