Gravel is made by hand in Nepal, but by machine in the U.S.because
A) The marginal product of labor is higher in Nepal than in the U.S.A
B) Capital is much cheaper in the U.S.than in Nepal
C) Of consumer preferences
D) The relative prices of labor and capital differ so dramatically in the two countries
Correct Answer:
Verified
Q9: A firm that is trying to produce
Q10: Once we enter the region of diminishing
Q11: Total cost is broken down into two
Q13: The short run total cost of zero
Q15: The average fixed costs of producing an
Q16: The total fixed cost curve
A)Varies with the
Q17: Output for a simple production process is
Q17: Say initially this firm is at point
Q18: The vertical distance between the average variable
Q19: The total cost curve
A)Is a horizontal line
B)Increases
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