Some firms in monopolistically competitive markets differentiate their products by their physical characteristics.
Answer the following statement true (T) or false (F)
True
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Answer the following statements true (T) or false (F)
1. The production function relates outputs to inputs. 2. The marginal product is the increase in output per additional unit of input. 3. The marginal product decreases, reaches a minimum, and then rises as output increases. 4. As long as the marginal product is falling, the average product falls. 5. The average product decreases any time the marginal product is decreased.
A firm must earn an economic profit in order to receive a normal rate of return.
Answer the following statement true (T) or false (F)
A labor market monopsony
A) has a marginal cost of labor curve that lies above the labor supply curve. B) has a marginal cost of labor curve that lies below the labor supply curve. C) is a labor market in which the firm has an elastic demand for labor. D) is a labor market in which the firm has an inelastic demand for labor.
The rational expectations theory claims that workers and firms will not make systematic errors when they forecast inflation
a. True b. False Indicate whether the statement is true or false