Suppose that each worker must use only one shovel to dig a trench, and shovels are useless by themselves. In the long run, an increase in the price of shovels will result in
A) fewer shovels being purchased to produce the same number of trenches.
B) more workers being hired to produce the same number of trenches.
C) the firm wishing to produce more trenches.
D) no change in the firm's input mix.
D
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Mike's Pretzels employs labor at a wage rate of $8 per hour and rents capital for $20 per hour. At its current level of labor and capital, the marginal product of labor is 24 and the marginal product of capital is 55
Is the firm currently maximizing profit? Explain.
While the world was fairly integrated at the turn of the last century, most trade was in agricultural and raw materials, whereas today manufactured consumer and producer goods play a much greater role in determining exports and imports
Indicate whether the statement is true or false