The most efficient combination of resources in producing a given output is the combination that:
A. comes closest to using the same quantities of land, labor, capital, and entrepreneurial
ability.
B. minimize the cost per unit of output.
C. uses the smallest total quantity of all resources.
D. conserves most on the use of labor.
Answer: B
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A) an insurance company B) the Internal Revenue Service C) the Red Cross D) a share of corporate stock
A doctor pursuing the interests of his patients rather than his own interests is an example of the principal-agent problem
Indicate whether the statement is true or false
A high price-earnings ratio for a stock indicates that either the stock is
a. undervalued or people are relatively optimistic about the corporation's prospects. b. overvalued or people are relatively optimistic about the corporation's prospects. c. overvalued or people are relatively pessimistic about the corporation's prospects. d. undervalued or people are relatively pessimistic about the corporation's prospects.
The graph depicts a monopolistically competitive firm.
Refer to the above graph. This monopolistically competitive firm is:
A. making a loss in the long run. B. making economic profit in the short run C. making economic profit in the long run. D. making a loss in the short run.