Investment value is based on the __________________ of the individual investor, not the market value in general.

Which of the following helps to explain why the supply curve of labor is upward sloping?

A) The substitution effect of a price change makes a good more expensive relative to other goods. B) The supply curve of labor is a derived supply curve; since the output supply curve is upward-sloping so is the labor supply curve. C) As the wage rate rises, the income effect causes the quantity of labor supplied to increase. D) As the wage rate rises, the opportunity cost of leisure rises.

Suppose that a lawn mowing services production function for lawns mowed in a week is M = (LK)1/2, where L is labor hours and K is the amount of capital (mowers and trimmers). The expansion path depends on

a. the wage rate only. b. the rental rate only. c. both the wage and rental rates. d. neither the wage nor rental rates.