With regard to the characteristics of production indifference curves, which of the following statements is/are NOT true?
a. Higher curves correspond to larger outputs
b. An indifference curve will generally have a negative slope.
c. An indifference curve is typically assumed to curve inward toward the origin near its middle.
d. All of the above are true for production indifference curves, but not for isoquants.
e. b and c
d
You might also like to view...
Inflation will
A) decrease the quantity of real GDP demanded. B) decrease aggregate demand. C) increase the quantity of real GDP demanded. D) increase aggregate demand.
A profit-maximizing monopolist will never produce on the elastic segment of its demand curve
Indicate whether the statement is true or false
One way the government can boost the economy out of a recession is:
A. with public announcements telling the public to save their money. B. by increasing government spending. C. by setting price ceilings on most goods so people can afford them. D. None of these will help an economy in recession.
Refer to Figure 8.1, which shows a family of average cost curves. Why does the vertical distance between Curve 1 and Curve 2 decrease as output increases from Q1 to Q2?
A. Because average variable cost first decreases, then increases as output increases from Q1 to Q2. B. Because average fixed cost decreases as output increases from Q1 to Q2. C. Because average total cost first decreases, then increases as output increases from Q1 to Q2. D. Because average variable cost increases faster than average fixed cost as output level approaches Q2.