An isocost line depicts:
a. the minimum cost required to produce a certain level of output, given input prices.
b. the input combination to produce a certain level of output.
c. the input combinations that satisfy a budget constraint, given input prices.
d. the maximum output that can be produced by a firm given its budget constraint.
C
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Your U.S.-based company is selling parts to a company in Bangladesh. If the Bangladeshi company purchases a futures contract
A) the Bangladeshi company bears the exchange rate risk. B) your company bears the exchange rate risk. C) the companies share in the exchange rate risk. D) there is no exchange rate risk.
We say there is productive inefficiency in saving lives if
a. there is some way to save more lives b. there is some way to save more lives without sacrificing any other goods or services c. all resources are devoted to saving lives d. no resources are devoted to saving lives e. anyone dies before reaching his or her life expectancy
What is strategic trade policy? What are the pros and cons of such a policy by a nation in its dealings with other nations?
Suppose all workers are identical but working for Ajax is more pleasant than working for Acme. In all other nonwage aspects, the two firms offer the same job characteristics. We would expect:
A. wage rates at Ajax to be higher than at Acme. B. wage rates at Ajax to be lower than at Acme. C. wage rates at Ajax and Acme to be the same. D. workers at Ajax would have to be monitored more closely than those at Acme.