With a linear production function in labor only, which of the following must be true?
A) The representative household works as much as possible.
B) The representative firm makes large profits.
C) The real wage equals total factor productivity.
D) The marginal product of labor exceeds the real wage.
C
Economics
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Because knowledge capital is nonexcludable and nonrival, firms have an incentive to ________ the research and development of other firms
A) free ride on B) ignore C) not use D) make bids on
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Restricting imports usually leads to
A) a country producing beyond its production possibilities frontier. B) a country consuming even further beyond its production possibilities frontier. C) a reduction in exports and employment. D) a higher per capita level of real consumption.
Economics