If the product derived from the last dollar spent on labor is greater than the product derived from the last dollar spent on capital, then the firm
A. should use less labor and more capital to minimize costs.
B. is minimizing costs.
C. should use more labor and less capital to minimize costs.
D. should increase the price paid to labor and decrease the price paid to capital to minimize costs.
Answer: C
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Scarcity is a condition that exists when
A) there is a fixed supply of resources relative to the demand for the product. B) there is a large demand for a product. C) resources are not able to meet the entire demand for a product. D) All of the above
If the adult population of a country is 200 million and its labor force is 140 million, then its labor-force participation rate is 60%
a. True b. False Indicate whether the statement is true or false
Suppose the market consists of 3 individuals: Citizen A, Citizen B and Citizen C.
If the good shown on the graphs is a public good, and the marginal cost of the 20th unit is $10, then the optimal quantity of the public good is:
A. 20 units B. less than 20 units. C. zero. D. greater than 20 units.
If a natural monopoly increases the quantity of output it produces, then:
A. its profit will increase. B. its average cost will decrease. C. its average cost will increase. D. it will have to increase its price.