If the price of a resource increases, other things constant, less of that resource will be hired because
a. producers will substitute away from that resource
b. producers fear starting a trend toward higher resource prices
c. the demand curve for the product will shift to the left
d. highly paid resources don't produce as much
e. it makes other resources look expensive as well
A
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Which firm is not dealing with adverse selection
a. a manufacturer requires a 90 day probationary period for new employees b. a temporary clerical agency requires a typing test c. a manufacturer requires suppliers to be ISO 9000 certified d. Smokers get the same life insurance rates as non-smokers
If a firm doubles its output in the long run and its unit costs of production decline, we can conclude that:
A. technological progress has occurred. B. economies of scale are being realized. C. the firm is encountering diminishing returns. D. diseconomies of scale are being encountered.