Microeconomics Theory and Applications
Quiz 16: Employment and Pricing of Inputs
Refer to Figure 16-1
Refer to Figure 16-1.The firm was initially at point A.It will move to point B if: A)the price of the final product increases. B)the wage rate increases. C)the cost of capital rises. D)the demand for the final product falls.
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In Figure 16-1.The move from point A to point B represents the _____ of an input price change. A)substitution effect B)output effect C)income effect D)effect of diminishing returns
Refer to Figure 16-1.The move from point B to point C represents the _____ of an input price change. A)substitution effect B)output effect C)income effect D)effect of diminishing returns
Refer to Figure 16-2.The firm will move from point B to point C when: A)the price of capital increases. B)the total output produced increases. C)the total output produced falls. D)the price of labor increases.
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