A textile firm operates a plant in the North (where capital expensive relative to labour)as well as a plant in the South (where labour is expensive relative to capital). In this diagram above the Southern plant will minimize cost by combining labour and capital in the amounts indicated by

Similar Questions

It is impossible to satisfy all human wants because ...

A baker bought flour and other ingredients for $250.00, spent $52.00 on distribution, sold the bread...

Government can influence aggregate demand through all the following measures except ...

An adverse environmental impact of the petroleum industry on the economy is ...

A price floor is usually fixed ...

Which of the following is excluded when making national income? ...

Average product is less than marginal product when ...

Inflation that is usually associated with periods of trade boom is ...

In the short-run commodity X and commodity Y are supplied jointly, which of the following is correct...

A movement from M to T implies that there has been ...