Answer the following statements true (T) or false (F)
1) All else equal, firms with a few large plants are more likely to have lower average costs than firms with many small plants.
2) A plant is located at the cost-minimizing location when the marginal benefit of moving closer to the inputs is exactly double the marginal cost of moving closer.
3) If a firm is not directly paying all of the transportation costs, managers still have an incentive to minimize the sum of the production and transportation costs.
4) If a firm has two plants, one in a desirable location and one in an undesirable location, workers located in the desirable location are likely to be paid more.
5) If a firm has two plants and workers at Plant 1 are paid $40,000 a year and workers at Plant 2 are paid $45,000, the $5,000 difference in salary is a compensating wage differential.
1) TRUE
2) FALSE
3) TRUE
4) FALSE
5) TRUE
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Many European countries, such as Italy and Spain, have:
A. less unemployment than the United States, but with a greater percentage of that unemployment in the form of long-term unemployment. B. more unemployment than the United States, but with a smaller percentage of that unemployment in the form of long-term unemployment. C. more unemployment than the U.S., with a greater percentage of that unemployment in the form of long-term unemployment. D. less unemployment than the United States, with a smaller percentage of that unemployment in the form of long-term unemployment.
Strategies such as public funding of schools, compensatory education, pre-school programs, affirmative action, and campaign-finance reforms focus on the existence of inequality
Indicate whether the statement is true or false