The most cost-efficient input is the one that can produce the most revenue per unit of input.
Answer the following statement true (T) or false (F)
False
Cost efficiency is the amount of output associated with an additional dollar spent on input-the MPP of an input divided by its price (cost).
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In the long run, a firm in monopolistic competition will
A) make a negative economic profit, that is, an economic loss. B) make zero economic profit, that is, a normal profit. C) make a positive economic profit. D) None of the above answers is necessarily correct because the amount of the profit or loss depends on the slope of the demand curve.
With the Troubled Asset Relief Program (TARP), the Treasury provided funds to banks in exchange for stock
Indicate whether the statement is true or false
In the short run, an increase in market demand will usually lead to a(n)
a. decrease in price and an increase in quantity. b. decrease in price and a decrease in quantity. c. increase in price and an increase in quantity. d. increase in price and a decrease in quantity.
In the market for labor, the monopsonist is the sole:
A. seller and can push wages down, below the competitive wage. B. buyer and can keep wages up, above the competitive wage. C. buyer and can push wages down, below the competitive wage. D. seller and can keep wages up, above the competitive wage.