The substitution of machines for labor
A) does not reduce employment opportunities because labor is required to produce the machines.
B) is not likely to reduce employment opportunities because as many or more workers will usually be demanded to produce, service, and operate the machines.
C) will proceed more rapidly in a society the more rapidly the cost of hiring workers rises.
D) will reduce employment opportunities if increased competition associated with the introduction of machinery lowers product prices.
C
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When the isocost line is tangent to the isoquant, then
A) MPL = MPK. B) the firm is producing that level of output at minimum cost. C) the firm has achieved the right economies of scale. D) All of the above.
Which of the following is an example of a positive externality?
a. air pollution b. littering in a public park c. buying a new automobile d. planting a nice garden in front of your neighbor's house e. pollution of a stream