Suppose a new technology allows firms to substitute mechanical tomato pickers for farm laborers. As a result, the demand curve for farm laborers will
A) become less elastic.
B) become more elastic.
C) shift to the right.
D) not be affected.
B
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An advantage of the decision tree is that
A) it eliminates the need for calculating the cost of capital. B) it eliminates the need for calculating probabilities. C) it causes the analyst to consider important events that may occur in the course of the project, and decisions and actions that may have to be undertaken. D) All of the above
Most economists believe that there are positive externalities in education. One can conclude that a free market would fail to give the socially optimal outcome because the equilibrium:
a. price and quantity would be too high. b. price would be too low and quantity would be too high. c. price and quantity would be too low. d. price would be too high and quantity would be too low. e. price and quantity would be just right.