Explain how firms that each produce as efficiently as they can, may not be equally productive
What will be an ideal response?
Firm-specific characteristics may vary the level of productivity for firms even if all firms operate as efficiently as each possibly can.
You might also like to view...
Refer to Scenario 7.3. Which of the following combinations of inputs is on the isoquant to produce 400 units of output?
A) L = 0, K = 400 B) L = 400, K = 0 C) L = 100, K = 100 D) all of the above E) A and B, but not C
Both the production of goods and services and the unemployment rate are used to measure
a. the business cycle. b. productivity. c. the interest rate. d. inflation.
Beverly owns a rabbit and receives a $600 benefit from owning it. Sometimes Beverly's rabbit makes its way onto the lawn of her neighbor, Charles, and eats the vegetables in Charles' garden. This intrusion by the rabbit costs Charles $400 . Can both individuals become better off if Charles pays Beverly some amount of money to get rid of the rabbit? Explain
To measure the amount of human capital available in a country, it would be best to determine _____.
(A) The literacy rate of that country. (B) The trading partners of that country. (C) If the nation is rich in natural resources. (D) The comparative advantage of the most profitable exported goods.