If the price of labor goes up and a firm replaces some workers with more machines, this is the _______ effect; when the price of a resource declines, and consequently the level of production rises, this is the _______ effect.
Fill in the blank(s) with the appropriate word(s).
substitution; output
Economics
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If the price of peaches, a substitute for plums, decreases the demand for plums will increase
Indicate whether the statement is true or false
Economics
With a given plant size, an increase in output will NOT result in an increase in
A) total cost. B) average fixed cost. C) total fixed cost. D) average variable cost.
Economics