Profit maximization implies that firms will want to ________
A) accumulate capital while the MPK is greater than the real wage
B) accumulate capital while the MPK is greater than the rental price of capital
C) accumulate labor while the MPK is greater than the rental price of capital
D) accumulate labor while the MPK is greater than the real wage
E) none of the above
B
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All of the following, except one, would shift the demand curve for pizza makers to the right. Which is the exception?
a. a decrease in the wage rate of pizza makers b. an increase in the demand for pizza c. a decrease in the price of pizza ovens d. an increase in the number of pizza parlors e. an improvement in the technology of making pizza
A good approximation of a country's standard of living is per capita GDP, which is population divided by real GDP.
Answer the following statement true (T) or false (F)