Which of the following is not a limitation of the survivor technique for measuring the optimum size of firms within an industry?
a. since the technique does not employ actual cost data in the analysis, there is no way to assess the magnitude of the cost differentials between firms of varying size and efficiency.
b. the managerial and entrepreneurial aspects of the production process are not included in the analysis
c. because of legal factors, the long-run cost curve derived by this technique may be distorted and may not measure the cost curve postulated in economic theory
d. a and b
e. b and c
b
You might also like to view...
Patti buys a new kind of cereal to try even though it's more expensive than her favorite kind. After a single bowl, Patti decides she does not care for the new cereal at all, and she:
A. forces herself to finish it, because she irrationally focuses on the sunk cost of the cereal. B. throws it away, because she irrationally spent money on something she had no information about. C. forces herself to finish it, because she rationally computes the cost per bowl. D. None of these is likely to happen for the reason stated.
Which of the following policy actions shifts the aggregate-demand curve?
a. an increase in the money supply b. an increase in taxes c. an increase in government spending d. All of the above are correct.
A slump in one industry could increase the relative attractiveness of another industry:
A. increasing the quantity of labor demanded in the latter. B. increasing the quantity of labor supplied in the latter. C. decreasing the quantity of labor supplied in the latter. D. decreasing the quantity of labor demanded in the latter.
Given the demand curve in this graph, if price were $1.00, how much is consumer surplus?
A. $0
B. $1.50
C. $5.00
D. $10.50