Isoquants reflect the fact that in the long run:
a. inputs can be substituted for each other.
b. a fixed set of inputs can produce different levels of output.
c. inputs used in production are complementary in nature.
d. different levels of input can be used to satisfy a budget constraint.
A
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The time it takes to overcome the practical and procedural hurdles before the Fed can begin to fix the economy is called the
A) recognition lag. B) implementation lag. C) impact lag. D) liquidity lag.
Refer to Figure 13-11. The firm represented in the diagram
A) makes zero economic profit. B) should exit the industry. C) makes zero accounting profit. D) should expand its output to take advantage of economies of scale.
The largest markets for both U.S. exports and imports in 2011 were
a. China/Japan. b. Western Europe. c. the Pacific Rim countries. d. Canada/Mexico.
For a single-price monopolist, marginal revenue falls faster than price (as output rises) because
A) the firm has no supply curve. B) in order to sell additional units, the price must be lowered on all units. C) the cost of producing extra units of output increases as production is increased. D) profits are maximized when marginal cost equals marginal revenue. E) none of the above — marginal revenue does not fall faster than price.