With full information any contract will lead to production efficiency
Indicate whether the statement is true or false
False. A hire or revenue sharing contract will not provide the incentives for the agent to maximize joint profit.
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Refer to the above table. If the price is $3, the perfectly competitive firm should produce
A) 102 units. B) 105 units. C) 103 units. D) 104 units.
The law of comparative advantages explains why
a. advanced nations will not trade with less-developed countries. b. an advanced nation will not trade with other countries. c. less-developed countries only trade among themselves. d. nations trade with each other, regardless of their relative levels of economic development. e. nations erect trade barriers.
If a company moves from producing 100 units of good A and 50 units of good B to producing 70 units of good A and 60 units of good B, the opportunity cost is:
a) 70 units of good A. b) 100 units of good A. c) 10 units of good B. d) 30 units of good A.
Holding other factors constant, a technological improvement that increases the marginal product of capital will:
A. decrease investment. B. increase investment. C. increase national saving. D. decrease national saving.