A firm's production function represents a certain level of technology
a. True
b. False
Indicate whether the statement is true or false
True
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Henry is willing to pay 45 cents, and Janine is willing to pay 55 cents, for 1 pound of bananas. When the price of bananas falls from 50 cents a pound to 40 cents a pound,
a. Henry experiences an increase in consumer surplus, but Janine does not. b. Janine experiences an increase in consumer surplus, but Henry does not. c. both Janine and Henry experience an increase in consumer surplus. d. neither Janine nor Henry experiences an increase in consumer surplus.
According to the information contained in the table, Brazil has an absolute advantage in
A. coffee, while Columbia has an absolute advantage in hot dogs.
B. both coffee and hot dogs.
C. neither coffee nor hot dogs.
D. hot dogs, while Columbia has an absolute advantage in coffee.
Adam Smith's invisible hand only leads to an efficient outcome when
A. buyers have more information about the product being traded than do sellers. B. buyers collect information up to the point at which the marginal cost of having more information equals the marginal benefit of having more information. C. buyers have less information about the product being traded than do sellers. D. buyers are fully informed about all relevant aspects of a product and the market in which it is traded.
A market is in equilibrium:
A. if the amount producers want to sell is equal to the amount consumers want to buy. B. whenever the demand curve is downsloping and the supply curve is upsloping. C. provided there is no surplus of the product. D. at all prices above that shown by the intersection of the supply and demand curves.