Refer to the information provided in Figure 7.6 below to answer the question(s) that follow. Figure 7.6Refer to Figure 7.6. If the price of capital is $10 and the price of labor is $20, the optimal production technique is
A. A.
B. B.
C. C.
D. D.
Answer: A
Economics
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Recessions in the U.S. economy show up in economic data as periods of
A) declining prices. B) rising interest rates. C) slower growth or actual decline in nominal GDP. D) slower growth or actual decline in real GDP.
Economics
In comparing the returns on U.S. and German Treasury securities, investors
A) should forecast the future dollar/euro exchange rate. B) may disregard the future dollar/euro exchange rate. C) should assume the future dollar/euro exchange rate is the same as today's. D) should assume the euro will depreciate if the German interest rate is above the U.S. interest rate.
Economics