A firm will use more and more land until the marginal revenue product of land
A. rises to the level of the rent.
B. falls to the level of the rent.
C. rises above the level of the rent.
D. falls below the level of the rent.
B. falls to the level of the rent.
You might also like to view...
A change in relative factor prices will always result in
A) a change in the slope of the isoquants. B) a tangency between the new isocost line and a new isoquant. C) a rotation of the isocost lines. D) All of the above.
Which of the following statements most likely describes what occurred in this economy?
a. Stagflation resulted from the decrease in price levels coupled with lower output.
b. An inflationary gap resulted due to the shift from RGDPNR to RGDP2.
c. Output decreased and unemployment increased.
d. An increase in consumer confidence shifted AD1 to AD2.