What can be determined by the slope of the curve. The relationship between the relative price of cigars to soyabean (Pc / Ps) and the wage-rental ratio (w/r) is depicted by the SS labelled curve. Relative price of cigars, Pc/Ps SS Wage-rental ratio, w/r a) Neither good is capital-intensive b) Both are labor-intensive. c) Both are capital-intensive. d) Cigars are labor-intensive while soyabeans are capital-intensive.

What can be determined by the slope of the curve. The relationship between the relative price of cigars to soyabean (Pc / Ps) and the wage-rental ratio (w/r) is depicted by the SS labelled curve. Relative price of cigars, Pc/Ps SS Wage-rental ratio, w/r a) Neither good is capital-intensive b) Both are labor-intensive. c) Both are capital-intensive. d) Cigars are labor-intensive while soyabeans are capital-intensive.

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter8: Production And Costs

Section: Chapter Questions

Problem 13QP

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What can be determined by the slope of the curve. The relationship between the relative price of cigars to soyabean (Pc / Ps) and the wage-rental ratio (w/r) is depicted by the SS labelled curve. Relative price of cigars, Pc/Ps SS Wage-rental ratio, w/r a) Neither good is capital-intensive b) Both are labor-intensive. c) Both are capital-intensive. d) Cigars are labor-intensive while soyabeans are capital-intensive.
Consider a firm that produces output using industrial robots and skilled labor. Suppose it is the case that a reduction in the price of industrial robots causes the firm's labor demand curve for skilled workers to increase (i.e., to shift to the right). This implies that: There is diminishing marginal product of robots. O There is diminishing marginal product of skilled labor. O Robots and skilled labor are complements. O Robots and skilled labor are substitutes. The unit cost of skilled labor is below the unit cost of robots.
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Explain how to find the equilibrium priceand quantity for a factor of production.
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At any given wage-rental ratio, cloth production uses a higher labor-capital ratio than food production; then cloth production is OA. labor-intensiver, capital-intensive OB. capital-intensive; capital-intensive OC. capital-intensive, labor-intensive OD. labor-intensive, labor-intensive. and food production is
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The price of oil is currently over $80 per barrel and has been as high as $90 per barrel after Saudi Arabia and a couple of oter OPEC countries reduced output this year. The demand for oil is expected to increase by 1 million barely per day over the next year according to the International Energy Agency but OPEC+ has been unclear about its intentions of increasing oil supplies. a. If OPEC+ increases its production by million barrels per day, we can unambiguously say that the equilibrium price will fall, and the equilibrium quantity will rise.