Microeconomics

Explain why labor might not always be a variable input. What will be

Explain why labor might not always be a variable input. What will be an ideal response?   ANSWER In the real world, units of labor are not identical. Many firms employ highly specialized units of labor. Their supply might be very inelastic so that the firm cannot easily increase the amount of this type of […]

Read full post

Date: September 9th, 2020

Which of the following statements best summarizes the law of diminishi

Which of the following statements best summarizes the law of diminishing marginal returns? A) In the short run, as more labor is hired, output diminishes. B) In the short run, as more labor is hired, output increases at a diminishing rate. C) In the short run, the amount of labor a firm will hire diminishes […]

Read full post

Date: September 9th, 2020