The firm's expansion path records:
a. profit-maximizing output choices for every possible price.
b. cost-minimizing input choices for all possible output levels for when input rental rates expand along with production.
c. cost-minimizing input choices for all possible output levels for a fixed set of input prices.
d. cost-minimizing input choices for profit-maximizing output levels.
c
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The domestic opportunity cost of producing a television in the United States is 20 bushels of wheat. In Korea, the domestic opportunity cost of producing a television is 10 bushels of wheat. In this case
A. the United States has a comparative advantage in the production of televisions. B. Korea has a comparative advantage in the production of wheat. C. mutual gains from trade can be obtained if the United States imports televisions from Korea and Korea imports wheat from the United States. D. mutual gains from trade can be obtained if the United States imports wheat from Korea and Korea imports televisions from the United States.
Money as a medium of exchange I. Facilitates the exchange of goods II. Reduces the incentive to barter
A) I only B) II only C) Both I and II D) Neither I nor II
Suppose the president of a college argues that a 25 percent tuition increase will raise revenues for the college. It can be concluded that the president thinks that demand to attend this college is:
a. unitary elastic. b. perfectly elastic. c. inelastic, but not perfectly inelastic. d. elastic.
Late in the 2000–2009 decade, real estate prices in the U.S. fell by a greater percentage than they had fallen since the
a. 1890s. b. 1930s. c. 1950s. d. 1970s.