Increases in both labor and capital productivity will result in:
A) downward shift of the average and marginal product curves and upward shift of the average cost curves.
B) downward shift of the average and marginal product curves and downward shift of the average cost curves.
C) upward shift of the average and marginal product curves and downward shift of the average cost curves.
D) upward shift of the average and marginal product curves and upward shift of the average cost curves.
C
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A person has a comparative advantage in producing a particular good if that person
A) has higher productivity in producing it than anyone else has. B) can produce it at lower opportunity cost than anyone else can. C) has less desire to consume that good than anyone else has. D) has more human capital related to that good than anyone else has.
If the price of labor increases, the typical perfectly competitive firm in the short run will
A) produce more output. B) hire less labor. C) hire the same labor and produce the same output. D) hire more labor.