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.
B) capital is much more expensive 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
Q10: A firm that is trying to produce
Q11: The vertical distance between the average variable
Q12: The total cost curve
A)is a horizontal line.
B)increases
Q13: Suppose labor and capital are both used
Q14: Once we enter the region of diminishing
Q16: Total cost is broken down into two
Q17: Output for a simple production process is
Q18: The variable cost of zero units of
Q19: When costs are at a minimum,
A)the ratio
Q20: Output for a simple production process is
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