The case of production with a single variable input is analogous to
a. changing the use of land, labor, and capital in production by a constant absolute amount.
b. a controlled laboratory experiment in which the scientist permits one variable to change at a time.
c. changing the use of land, labor, and capital in production by a constant percentage.
d. specialization in one particular product by a company.
b
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Four stores have a problem with theft and security is a public good. Let S stand for the number of person-hours of security patrols per week. The marginal benefit of security patrols to each of the stores is given by the formula MB = 200/(1 + S). Patrols cost $25 per hour. Which of the following gives the marginal social benefit function?
A. MSB = 50/(1 + S) B. MSB = 4 + [200/(1 + S)] C. MSB = 800/(1 + S) D. MSB = [200/(1 + S)] - 4
Of the types of business organizations in the United States, corporations account for ________ percentage of revenues and ________ percentage of profits
A) the largest; the largest B) the smallest; the largest C) neither the largest nor smallest; the largest D) largest; neither the largest nor smallest
Dominant price leadership exists when
A) one firm drives the others out of the market. B) the dominant firm decides how much each of its competitors can sell. C) the dominant firm establishes the price at the quantity where its MR = MC, and permits all other firms to sell all they want to sell at that price. D) the dominant firm charges the lowest price in the industry.
If every country specializes in what it produces best and then trades, more will be produced than if each country tries to produce everything for its own needs.
Answer the following statement true (T) or false (F)