The condition that requires MRTS for each input pair to equal the ratio of their marginal costs is known as ________ efficiency, and the condition that requires MRS for each output pair to equal their output price ratio is known as ________
efficiency. A) economic, market
B) micro, macro
C) cost, revenue
D) technical, output
D
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Starting from long-run equilibrium, a large tax increase will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. recessionary; lower; potential B. expansionary; lower; potential C. expansionary; higher; potential D. recessionary; lower; lower
Contrast a fixed-rate exchange rate system and a flexible-rate exchange system in terms of a foreign currency shortage precipitated by an increase in U.S. demand for a foreign good.
What will be an ideal response?
Assume that a monopolist faces the demand schedule given in the table below and a constant marginal cost of $50 for each unit of output. To maximize profits, the monopolist would produce ____ units of output at a price of ____ per unit.
a. 5,000; $50 b. 4,000; $60 c. 3,000; $70 d. 2,000; $80
The income elasticity of demand is equal to the percentage change in income divided by the percentage change in quantity demanded
a. True b. False Indicate whether the statement is true or false