Two goods are substitutes if a decrease in the price of one raises the quantity demanded of the other.
Answer the following statement true (T) or false (F)
False
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The marginal product of an input is
A) total product divided by the amount of the input used to produce this amount of output. B) the addition to total output that adds nothing to total revenue. C) the addition to total output that adds nothing to profit. D) the addition to total output due to the addition of one unit of all other inputs. E) the addition to total output due to the addition of the last unit of an input, holding all other inputs constant.
Identify the public good in the following
a. A small library with a limited collection of books b. A crowded children's park in your neighborhood c. The visit to a museum which charges a nominal entry fee d. The scenic view of the ocean from a beach
Studying which of the following is helpful in learning to think like an economist?
a. theory b. case studies. c. examples of economics in the news. d. all of the above.
Which of the following is correct?
The following table shows the relationship between output and costs for two firms in the short run.
A. B has lower fixed costs than A
B. A has higher unit costs than B at low levels of output
C. A has greater marginal costs than B at each level of output
D. B starts experiencing diminishing marginal returns with the second unit of output