The concept of the production function implies that a firm using resources inefficiently will
A) obtain less output than the theoretical production function shows.
B) obtain more output than the theoretical production function shows.
C) obtain exactly the amount that the theoretical production function shows.
D) not be subject to diminishing marginal product.
Answer: A
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A worker who has invested in ________ skills will be ________ mobile than would otherwise be the case
A) occupation-specific; less B) occupation-specific; more C) ethical; less D) ethical; more E) occupation-nominal; less
A consumer values a car at $30,000 and a producer values the same car at $20,000 . If a tax is levied on the seller, what level of tax will result in unconsummated transaction?
a. 0% b. 25% c. 60% d. 40%
In the short run, a firm in a monopolistically competitive market operates much like a
a. firm in a perfectly competitive market. b. firm in an oligopoly. c. monopolist. d. monopsonist.
If milk and cookies are complements and the price of cookies rises, we would expect to see:
A. a decrease in the quantity demanded for milk but no change in demand. B. an increase in the demand for milk. C. an increase in the quantity demanded for milk but no change in demand. D. a decrease in the demand for milk.