The market mix of output and the optimal mix of output are always the same.
Answer the following statement true (T) or false (F)
False
Sometimes markets may fail to achieve the optimal mix of output.
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Quasilinear goods are borderline goods between the set of normal and the set of inferior goods.
Answer the following statement true (T) or false (F)
If the supply of a resource is perfectly price inelastic then its opportunity cost is zero
Indicate whether the statement is true or false
Average variable cost and average total costs get closer together as output increases because
A) diminishing returns set in. B) average fixed costs decrease as output increases. C) marginal costs decrease as output increases. D) economies of scale become apparent.
The natural level of output is the level of output that occurs when
A) the goods market and financial markets are in equilibrium. B) the economy is operating at the unemployment rate consistent with both the wage-setting and price-setting equations. C) the markup (m) is zero. D) the unemployment rate is zero. E) there are no discouraged workers in the economy.