Question 7 1 1 pts This year a large number of Canadians immigrated to the

Question 7 1 1 pts this year a large number of

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  Question 7 1 / 1 pts This year a large number of Canadians immigrated to the United States. What has  happened to the labor supply for both countries?    The labor supply for both countries increased   Correct!
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  The labor supply for Canada decreased and for the U.S. the labor supply increased   The labor supply for Canada increased and for the U.S. the labor supply decreased    The labor supply for both countries decreased   Since workers moved out of Canada and into the U.S., the labor supply in Canada fell  and it increased in the U.S.   Question 8 0 / 1 pts A profit maximizing firm will hire additional units of capital as long as the rental price of  capital is Correct Answer   equal or less than the marginal product of capital multiplied by the final good’s price   equal or greater than the marginal revenue product of capital    equal or greater than the marginal product of capital   You Answered    equal or less than the marginal product of capital   The firm will hire capital up to the point where the rental price of capital is equal to the  MRP of capital.   Question 9 1 / 1 pts
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You run a small farm that grows fresh produce to sell at your roadside stand. You  employ workers, you rent land and you rent capital in order to grow the produce. If the  marginal product per dollar of capital is $2, the marginal product of labor is 20, the price  of labor is $10 and the marginal product of land is 32, what is the price of land?    $2      $10   Correct!    $16      $20   Use the cost minimization condition for a firm using multiple inputs to answer this  question.   Question 10 1 / 1 pts Your bagel shop uses both capital and labor in the production of bagels. In this  production process capital and labor are substitutes. If you install a new oven and the  marginal product of capital increases, you will Correct!    reduce the number of workers you employ      increase the number of workers you employ  
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   reduce the amount of capital you are using     not make any changes since you are already maximizing profit Since K and L are substitutes you will employ more capital and less labor.
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