Any event that causes either the demand curve or the supply curve to shift will also change the equilibrium price and quantity

Refer to Figure 11-15. Suppose Hilda produces 100 gooseberry pies. What is the marginal rate of technical substitution of labor for capital when labor is increased from 10 to 20 hours?

A) 1 unit of capital B) 10 units of capital C) 14 units of capital D) 24 units of capital

If two different fuel sources (e.g., coal and natural gas) are perfect substitutes in the long-run production of energy. How will a profit maximizing firm choose between these two inputs?

A) The firm will only use the input with lower cost B) The firm will use equal amounts of the two inputs, even if one of the inputs has a lower cost C) The firm will only use the input with higher cost D) The firm cannot achieve a profit maximizing level of output under these circumstances