A coffee manufacturer uses both capital and labor resources for production. All other things constant, an increase in the price of capital will:
a. shift the supply of labor curve leftward
b. shift the demand for capital curve rightward.
c. shift the demand for labor curve leftward.
d. shift the demand for labor curve rightward.
d
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Assuming the United States is the "domestic" country, if the real exchange rate between the United States and France increases from 1.5 to 1.8,
A) the prices of U.S. goods and services have increased by 53% relative to France. B) the prices of U.S. goods and services have decreased by 16% relative to France. C) the prices of U.S. goods and services have increased by 20% relative to France. D) the prices of U.S. goods and services have increased by 3% relative to France.
Entry into a competitive market will continue until
A) economic profits are zero. B) normal profits are zero. C) when accounting losses are zero. D) a. and b. are true