If a firm faces perfectly competitive product and factor markets and the marginal product of labor and capital are 4 and 9, respectively, while the wage rate is $2 and the rental rate on capital is $4, the firm should
A) use relatively more capital.
B) use relatively less capital.
C) increase all inputs proportionately.
D) decrease all inputs proportionately.
A
Economics
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If national income is equal to zero, then consumption must also be equal to zero
Indicate whether the statement is true or false
Economics
In economic terms, the purpose of the fair-trade movement is to:
A. lower prices for consumers of imported good. B. reduce the adverse environmental effects of international trade. C. redistribute gains from international trade in favor of low-income producers and workers. D. prevent the overextraction of scarce raw materials from low-income economies.
Economics