If the cost of labor increases, the isocost line will
A) stay the same.
B) shift outward in parallel fashion.
C) rotate inward around the point where only capital is employed in production.
D) shift inward in parallel fashion.
C
Economics
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A tax on firms for polluting will be most effective in reducing pollution at low cost if the tax
A) is levied on a one-time, lump-sum basis. B) per unit of pollutant is constant. C) per unit of pollutant is lower for low polluting firms. D) per unit of pollutant is proportioned to profits or ability to pay.
Economics
Economists would describe the U.S. automobile industry as:
A. purely competitive. B. an oligopoly. C. monopolistically competitive. D. a pure monopoly.
Economics