Answer:
C. the greater is the marginal productivity of labor relative to that of capital
Explanation:
An isoquant is a curve that shows all the combinations of inputs that yield the same level of output.
When adding one factor holding the other factor constant inevitably, leads to lower output levels, the isoquant must become steeper, as more capital is added instead of labour, and flatter when labour is added instead of capital. Returns to capital even decline.
Answer:
b. maximum amount of output that can be produced given the labor force, capital stock, and technology.
Explanation:
GDP refers to the gross domestic product which reflects the finalized value of the goods and services produced domestically
On the other side, the potential GDP refers to the maximum level of output that can be produced by considering the labor force, capital stock, technology by taking the constant inflation rate
Therefore option b is correct
There are two shoe stores in a small town. Store a is selling a pair of running shoes for $ 39.50. If it costs Store a $ 40 to order this pair of shoesfrom the factory, then Store A is practicing predatory pricing.
This store is most likely selling running shoes below the cost of production to drive the other shoe<span>store out of business or at least to discourage them from selling the same running shoe.</span>
