Explain how firms that each produce as efficiently as they can may not be equally productive

What will be an ideal response?


Firm-specific characteristics may vary the level of productivity for firms even if all firms operate as efficiently as each possibly can.

Economics

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"The weather induced failure of the 1999 grain crop leads Russia to quadruple grain imports from the United States." Assuming that the U.S. grain exports come from government warehouses,

A) net investment in the United States would increase dramatically according to the flexible accelerator theory. B) net investment in the United States would decrease dramatically according to the flexible accelerator theory. C) there would be no change in net investment since the Russian demand is temporary. D) net investment would increase slowly since this is agriculture.

Economics

The largest category of the unemployed are

A) job losers. B) reentrants. C) job leavers. D) new entrants.

Economics

An example of human capital is:

A. a wedding dress. B. a wrench. C. plumbing skills. D. a manual on how to install a sink.

Economics

If the Federal Reserve wanted to change the money supply in the economy, it would be least likely to:

A. buy bonds on the open market. B. sell bonds on the open market. C. change the level of reserves required to be held by banks. D. change the federal funds rate.

Economics