Economists think of a business as a machine, where you put inputs in one end and get outputs from the other end. This metaphor is called the
A. revenue function.
B. cost function.
C. production function.
D. profit maximum.
Answer: C
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Situations in which the assumption of efficient, competitive markets fails to hold are called:
A. market failures. B. inelastic-response markets. C. missing markets. D. market interventions.
Exhibit 1A-4 Straight line
Straight line A-D in Exhibit 1A-4 shows that:
A. as the X value increases by 80, the Y value increases by 40 so the slope is 2. B. as the Y value increases by 40, the X value increases by 80 so the slope is 1/2. C. increasing values for X do not affect the value of Y. D. increasing values for Y do not affect the value of X.
Which of the following conditions is TRUE for a profit-maximizing firm in a perfectly competitive industry?
A. MC = AVC B. ATC = AFC C. MR = TC D. MR = MC
The BLS has recently made explicit adjustments in its CPI calculations to control for
A. purchase location adjustments. B. consumer electronics quality improvement issue. C. substitution between goods. D. food safety quality issues.