Which of the following statements is true of the marginal product of an input?
A) The marginal product of an input is given by the ratio of the firm's total output to the units of the input used.
B) The marginal product of an input increases as more and more inputs are used.
C) The marginal product of an input can take negative values.
D) The marginal product of the first unit of a variable input is zero.
C
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What is a market failure?
A) It refers to the inability of the market to allocate resources efficiently up to the point where marginal social benefit equals marginal private cost. B) It refers to a breakdown in a market economy because of widespread corruption in government. C) It refers to the inability of the market to allocate resources efficiently up to the point where marginal social benefit equals marginal social cost. D) It refers to a situation where an entire sector of the economy (for example, the airline industry) collapses because of some unforeseen event.
A recent study indicated that "Stricter college alcohol policies such as raising the price of alcohol, or banning alcohol on campus, decreases the number of students who use marijuana"
This indicates that the cross-price elasticity between alcohol and marijuana is positive. Indicate whether the statement is true or false
The marginal product of capital (MPK) can be calculated from the following ________
A) the capital share of income and the average output per unit of capital B) the capital share of income and average capital per worker C) output and capital D) the capital share of income and output E) none of the above
When oligopolists take into account their competitors' behavior, this situation is called:
a. mutual interdependence. b. monopolistic competition. c. independent. d. price discrimination. e. loss minimization.