The input demand functions that can be derived from cost functions are referred to as "contingent" demand functions because the functions:
a. assume input costs are constant.
b. express input demand as a function of output.
c. depend on the assumption of profit maximization.
d. assume constant returns to scale in production.
b
You might also like to view...
A capital gain results when
A) an asset is sold for more than it was purchased. B) a debt is settled. C) a person purchases a bond. D) a person buys gold.
Gross Domestic Product (GDP) figures may understate the value of goods and services due to
A. the exclusion of the underground economy. B. the inclusion of legal non-reported, non-taxed income. C. the inclusion of household production. D. the exclusion of the value of stocks.
Suppose a price index is formed to measure changes in the price level between 2005 to 2010. To form a Laspeyres price index, one would
a. compare the cost of the typical basket of goods purchased in 2005 with the cost of the typical basket of goods purchased in 2010. b. calculate the increase in the cost of the typical market basket purchased in 2005. c. calculate the increase in the cost of the typical market basket purchased in 2010. d. take the typical basket of goods purchased in 2007, and compare the costs of that basket in 2005 and 2010.
The labor force in the United States is defined as
A) the total number of individuals who are employed. B) the sum of the total number of individuals who are employed and the officially unemployed. C) the sum of the total number of individuals who are employed, the officially unemployed, and discouraged workers. D) the total number of individuals who are 16 years old and older, but not retired. E) none of the above