A graph showing ________ is an isoquant.
A. all combinations of products that yield the same total utility
B. all combinations of capital and labor that have the same total cost
C. all combinations of capital and labor that a firm can use to produce a given amount of output
D. all combinations of products desired by consumers
Answer: C
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A firm will tend to select the least costly input combination to produce its output
a. True b. False Indicate whether the statement is true or false
When government owns a natural monopoly, it can:
A. at a loss. B. make business decisions based on political pressures. C. lose the incentive to be efficient. D. All of these statements are true.
If August futures for a commodity are currently trading at $9.30/bushel, and you expect the basis in July to be $0.30/bushel over the August futures, then you expect the July cash price to be:
A. $9.05/bushel under August B. $9.55/bushel over August C. $9.00/bushel D. $9.60/bushel
Describe the graph for a long-run supply curve in a decreasing-cost industry. Why does it have this slope?
What will be an ideal response?