A corollary to the Rybczynski theorem is that in the long run, prices of factors will not be affected. This is known as:
a. the Friedman corollary.
b. the MarshallLerner condition.
c. the factor price insensitivity result.
d. the StolperSamuelson prediction.
Answer: c. the factor price insensitivity result.
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Costs paid in money to hire a resource is
A) normal profit. B) an implicit cost. C) an explicit cost. D) an alternative-use cost. E) economic profit.
Suppose a profit-maximizing monopolist faces a constant marginal cost of $10, produces an output level of 100 units, and charges a price of $50 . The socially efficient level of output is 200 units. Assume that the demand curve and marginal revenue curve are the typical downward-sloping straight lines. The monopoly deadweight loss equals $2,000
a. True b. False Indicate whether the statement is true or false
One similarity between the beliefs of the classical economists and Keynes is that increased saving would necessarily stimulate an equal amount of increased investment spending
Indicate whether the statement is true or false
An increase in the value of a currency relative to other currencies is called a(n):
A. evaluation. B. overvaluation. C. appreciation. D. devaluation.