The perfect substitution of two inputs implies that
A) two inputs can be substituted at a ratio of 1 to 1.
B) one input can be substituted for another up to some point.
C) two inputs can be substituted at some constant ratio.
D) one input can be substituted for another.
C
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In a command economy, the basic economic questions are answered by:
a. central authority. b. individual buyers and sellers. c. the traditional methods. d. none of these.
Which of the following is NOT a commitment device?
A. A pre-nuptial agreement that provides for a large penalty in the event a spouse has an affair. B. A non-refundable advance payment to reserve a room at a resort. C. High fines for illegal parking on campus. D. A manufacturer's 2-year agreement to fix, at no cost to you, anything that breaks on your computer.
In Dutch or first-price sealed-bid auctions, participants will bid less than their highest valuation
What will be an ideal response?
Assuming supply is a straight line and intersects the y axis, the equation of the inverse supply curve is represented as
A. P + Qs = c + d. B. P = c - dQs. C. P = c + dQs. D. Q = c - bPs.