Question :
11) Which of the following statements correctly identifies a difference : 1377482
11) Which of the following statements correctly identifies a difference between labor and capital?
A) Capital can be rented or owned by a firm, but labor cannot be owned.
B) Labor can be rented or owned by a firm, but capital cannot be owned.
C) Labor is hired until a point where the marginal product of labor equals the price of labor, whereas capital is hired until a point where the average product of capital equals the price of capital.
D) Labor is hired until a point where the average product of labor equals the price of labor, whereas capital is hired until a point where the marginal product of capital equals the price of capital.
12) Which of the following statements correctly identifies a difference between labor and land?
A) Land can be rented but not owned by a firm, whereas labor can be rented or owned.
B) Labor can be rented but not owned, whereas land can be rented or owned by a firm.
C) Labor is hired until a point where the marginal product of labor equals the price of labor, whereas land is rented until a point where the average product of land equals the price of land.
D) Labor is hired until a point where the average product of labor equals the price of labor, whereas land is rented until a point where the marginal product of land equals the price of land.
13) Which of the following correctly identifies a difference between land and capital?
A) Land is fixed in supply, whereas capital is variable.
B) Land is variable in supply, whereas capital is fixed.
C) Land can be owned or rented, whereas capital can only be owned by a firm.
D) Capital can be owned or rented by a firm, whereas land can only be owned by a firm.
14) Which of the following correctly identifies a difference between land and capital?
A) Land can be owned or rented by a firm, whereas capital cannot be owned.
B) Capital can be owned or rented by a firm, whereas land cannot be owned.
C) Land is artificially created, whereas capital is a naturally occurring resource.
D) Capital is artificially created, whereas land is a naturally occurring resource.
15) The cost of using a good for some specific period of time is called the ________ of the good.
A) issue price
B) rental price
C) auction price
D) market price
The following figure shows the number of machines demanded by a perfectly competitive firm at different rental prices.
16) Refer to the figure above. What is the optimum number of machines hired if the market rental price is $5 per month?
A) 20 machines
B) 40 machines
C) 80 machines
D) 100 machines
17) Refer to the figure above. What is the optimum number of machines hired if the market rental price is $8 per month?
A) 20 machines
B) 40 machines
C) 160 machines
D) 180 machines
18) Refer to the figure above. If the optimum number of machines hired is 100, the market rental price must be:
A) $3 per month.
B) $4 per month.
C) $5 per month.
D) $7 per month.
