True or False: If firms earn zero profits and if labor and capital are the only inputs, then labor and capital must be complements in production.
Answer to relevant QuestionsSuppose that there are exactly three factors of production: skilled labor, which is represented by unions; unskilled labor, which is not represented by unions; and capital. Currently, skilled labor earns $15 per hour and ...Dick recently received a substantial inheritance from his aunt and immediately started working more hours at his job. If Dick’s wage rate increases, can you predict what will happen to the number of hours that he works? ...Suppose that an unexpected blight wipes out a large portion of this year’s agricultural harvest. What happens to the wage rate, the amount of labor supplied to the marketplace, and the amount of labor supplied by any given ...The current federal tax law allows deductions for the depreciation of physical capital. True or False: One effect of this deduction is to reduce the average level of education.Write a brief letter in response to the following column:DEAR ANN LANDERS: This is going to seem like a terrifically trivial problem compared to most you receive, but I’ve got to get it off my chest. I’m sure almost ...
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