Which of the following is not a result of the theory of land rent?
A. Capital invested on any plot of land must yield the same return as capital invested on any other plot of land.
B. The difference between the costs of producing on any two pieces of land must equal the difference between their rents.
C. Marginal land earns no rent.
D. Productive land earns more rent than marginal land, which earns more rent than nonproductive land.
Answer: D
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A shift of the supply curve of oil raises the price from $70 a barrel to $80 a barrel and reduces the quantity demanded from 40 million to 38 million barrels a day. You can conclude that the
A) demand for oil is elastic. B) demand for oil is inelastic. C) supply of oil is elastic. D) supply of oil is inelastic.
Refer to Figure 12-2. The firm breaks even at an output level of
A) Q1 units. B) Q2 units. C) Q3 units. D) Q4 units.
Average variable cost is a(n) ______ of costs that ______.
a. short-run estimate; do not change when output rises b. long-run measure; decrease when output rises c. per-unit measure; change with the level of output d. accounting summary; do not affect long-run total cost
Refer to the following graph.
An indifference curve with a constant marginal rate of substitution is shown by:
A. A. B. B. C. C. D. D.