The production function
A. shows the relationship between input prices and amount of input used.
B. always shows increasing marginal product of labor.
C. shows the maximum level of output for a given set of inputs.
D. is an economic relationship between revenue and cost.
Answer: C
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A tariff on imports affects foreign suppliers ____; a quota affects foreign suppliers ____.
A. effectively; ineffectively B. haphazardly; carefully C. equally; capriciously D. unfairly; fairly E. unequally; unequally
What is cost-plus pricing? Why do some firms use cost-plus pricing even when the firms' managers have the resources to devise a pricing strategy that would result in greater profits?
What will be an ideal response?
A point inside the utility possibility frontier is:
A. inefficient. B. impossible. C. efficient. D. desirable.
The total fixed cost curve:
a. varies with the quantity of inputs used. b. decreases with output. c. increases with output. d. remains constant regardless of output.