The following is true about point A for a firm with the I1 isocost curve. 
A. Labor has a lower marginal product than capital.
B. The firm is minimizing the costs of production.
C. Capital is relatively more expensive than labor.
D. All of the choices are true.
Answer: B
Economics
You might also like to view...
An option allowing the owner to sell an asset at a future date is a
A) put option. B) call option. C) futures contract. D) forward contract.
Economics
If an industry currently dominated by three large producers whose revenues represent 30%, 30%, and 30% of the market's total revenues, with the remaining two firms each representing 5%, then one of the large firms merged with one of the small ones, what would be the new four firm concentration ratio and the new Herfindahl-Hirschman Index for this industry?
a. 100%; 3,050 b. 100%; 2,750 c. 95%; 3,050 d. 95% 2,750
Economics