Suppose our firm produces chartered business flights with capital (planes) and labor (pilots) in fixed proportion (i.e., one pilot for each plane). The expansion path for this business will:
A) increase at a decreasing rate because we will substitute capital for labor as the business grow.
B) follow the 45-degree line from the origin.
C) not be defined.
D) be a vertical line.
B
Economics
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In the above figure, if the firm is in monopolistic competition, its price will be
A) $1. B) $2. C) $3. D) $4.
Economics
When individuals use all available information about an economic variable to make a decision, expectations are
A) rational. B) overestimates of reality. C) underestimates of reality. D) accurate.
Economics