If a Publishing Company Purchases Faster Computers to Speed Up

question 164

Multiple Choice

If a publishing company purchases faster computers to speed up word processing,_____

• A)the marginal product of its editors will increase, which will shift the demand curve for editors to the right.
• B)the marginal product of its editors will increase, which will shift the demand curve for editors to the left.
• C)the wages of its editors will increase, which will cause an upward movement along the demand curve for editors.
• D)the wages of its editors will decrease, which will cause a downward movement along the demand curve for editors.
• E)the price of the journals printed by the company will increase.

---

Definitions:

Interest Rate

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the principal amount.

Loan

A sum of money borrowed that is expected to be paid back with interest.

Economic Profit

The financial gain achieved by a firm or individual after deducting both explicit (direct) and implicit (indirect, such as opportunity costs) costs from total revenues.

Investment

Committing funds to assets with the goal of earning returns over time.