If your firm's production function has constant returns to scale, and if you double all your inputs, then your firm's productivity will
a. not change.
b. increase but not double.
c. double.
d. more than double.
a
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In closely held firms, the manager-stockholder conflict is
A) worse than in the larger firm because there is no incentive for the individual stockholder to monitor managers. B) the same as in publicly held firms. C) less severe than in the larger firm because there is an incentive for the major stockholder to monitor managers. D) less pronounced than in large public companies, because the manager is the owner.
President Franklin D. Roosevelt's first action regarding the run on banks was to
(a) close all banks. (b) increase the money supply. (c) prohibit bank foreclosures. (d) provide federal guarantees to depositors.
In the short run, the horizontal sum of all of the marginal cost curves (above minimum average variable cost) of individual firms in a competitive market defines the
a. average variable cost curve b. market demand curve c. market supply curve d. average total cost curve e. total quantity demanded
Related to the Economics in Practice on page 316: According to the Economics in Practice, which of the following statements is true?
A. Even though tastes tend to differ across areas, we tend to see a smaller variety of products available from an online retailer than from an individual brick-and-mortar retailer. B. Because tastes tend to be roughly the same across areas, we would expect to see a about the same variety of products available from an online retailer as from an individual brick-and-mortar retailer. C. Because tastes tend to differ across areas, we would expect to see a smaller variety of products available from an online retailer than from an individual brick-and-mortar retailer. D. Because tastes tend to differ across areas, we would expect to see a wider variety of products available from an online retailer than from an individual brick-and-mortar retailer.