If a firm is hiring inputs under purely competitive conditions, then any level of output will be produced with the least-cost combination of resources A and B when:
A. MU of A/price of A = MU of B/price of B
B. MRP of A = MRP of B
C. The price of A equals the price of B
D. MP of A/price of A = MP of B/price of B
D. MP of A/price of A = MP of B/price of B
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Refer to Figure 2-2. If Vidalia chooses to produce 60 dozen orchids, how many roses can it produce to maximize production?
A) 30 dozen roses B) 50 dozen roses C) 100 dozen roses D) 150 dozen roses
As a company adds the first four workers to its production process in the short run, its output rises from 0 to 12 to 25 to 35 to 43 . Addition of the fifth worker will most likely lead to an output rate
a. greater than 51. b. equal to 51. c. less than 51. d. greater than 51 if the firm experiences diseconomies of scale. e. none of the above.
An individual buys a bond for $1,000 and sells it one year later for $1,050. What is the annual interest rate return that this individual has received on this bond?
A) 5.0 percent B) 50.0 percent C) 7.5 percent D) 4.0 percent E) 0.05 percent
If an individual's total utility from consuming two goods increases, then there must be
A. a downward rotation of the individual's indifference curve. B. an inward rotation of the individual's indifference curve. C. an inward shift of the individual's indifference curve. D. an outward shift of the individual's indifference curve.