If the cost efficiency of input A is 45 pounds per $1 of cost, and the cost efficiency of input B is 40 pounds per $1 of cost, then input A is more cost-efficient than input B.
Answer the following statement true (T) or false (F)
True
Cost efficiency is the amount of output associated with an additional dollar spent on input-the MPP of an input divided by its price (cost). Therefore, because 45 is greater than 40, input A is more efficient.
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The principle benefit of tariff protection goes to
A) domestic consumers of the good produced. B) foreign consumers of the good produced. C) domestic producers of the good produced. D) foreign producers of the good produced. E) the domestic government.
When competition is present and private ownership rights are clearly defined and securely enforced,
a. production and trade are encouraged and plunder (taking from others) is discouraged. b. people get ahead by helping others in exchange for income. c. employers will have to provide prospective employees with at least as good a deal as they could get elsewhere. d. all of the above are correct.
Some examples of standardized products include
a. furniture products, such as chairs and tables b. clothing products, such as shirts and jeans c. agricultural products, such as eggs and milk d. electronic products, such as DVD players and TVs
Which of the following is consistent with a competitive market?
A.) A small number of firms B.) Exit of small firms when profits are high for large firms C.) Zero economic profit in the long run D.) Marginal revenue lower than price for each firm