Refer to the information provided in Table 8.1 below to answer the question(s) that follow.
Table 8.1 
Refer to Table 8.1. Assuming the price of labor (L) is $5 per unit and the price of capital (K) is $10 per unit, what production technique should this firm use to produce 2 units of output?
A. production technique A
B. production technique B
C. The firm is indifferent between production technique A and production technique B.
D. It is impossible to determine if the firm should select production technique A or B because total fixed costs are not given.
Answer: B
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The demand curve a monopolist faces
a. is more elastic than a perfectly competitive firm's demand curve b. is the market demand curve c. is as elastic as a perfectly competitive firm's demand curve d. is not affected by the prices of complements e. will not shift in response to a change in consumer tastes
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If consumers are very foresighted, we would expect actual consumption spending to
A) increase during recessions. B) increase during episodes of stagflation. C) have no relation to wealth. D) resemble a "random walk." E) be entirely predictable.