"If the wage rate paid to one form of labor is twice the cost of another form of labor, the first type of labor must be twice as productive." Comment
Indicate whether the statement is true or false
true . Firms minimize cost by setting the ratio of marginal productivity per unit cost equally across all inputs. If one form of labor is twice as expensive as another, the firm will want the MP of the first type of labor to be twice that of the second.
Economics
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Suppose a nation opens up to free trade and becomes an exporter of goods. Which of the following is then true?
A) The nation as a whole suffers losses. B) Sellers lose. C) Buyers lose. D) Buyers gain.
Economics
If a firm increases its capital stock per person while holding constant the number of workers employed, the firm is said to experience:
A. capital augmentation. B. investment deepening. C. labor intensity. D. capital deepening.
Economics