In 2-input production models, constant returns to scale implies horizontal marginal cost curves.
Answer the following statement true (T) or false (F)
True
Rationale: Constant returns to scale means that we can always produce the next good with the same amount of inputs as the previous good -- implying constant marginal cost.
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A macroeconomic surplus occurs when consumers reduce their consumption expenditures and increase their saving
a. True b. False Indicate whether the statement is true or false
Output for a simple production process is given by Q = KL, where K denotes capital and L denotes labor. The price of labor is $10 per unit and the price of capital is $2 per unit.If at the current level of production the marginal product of labor is 4 while the marginal product of capital is 2, then in order to minimize your costs of production you should use
A. more of both inputs. B. the same amount of both inputs. C. more capital and less labor. D. more labor and less capital.
Between 1995 and 2000 our trade deficit more than ________________.
Fill in the blank(s) with the appropriate word(s).
In the Microsoft antitrust case, the federal government said in essence that:
A. the mere presence of monopoly violated the Sherman Act, irrespective of Microsoft's behavior. B. Microsoft was a "bad monopoly." C. Microsoft was generally a "good monopoly" but that its tying contracts involving Internet Explorer violated the Clayton Act. D. the case was similar to the U.S. Steel case of 1920.