On a production function, as capital per worker increases, output per worker
a. increases. This increase is larger at larger values of capital per worker.
b. increases. This increase is smaller at larger values of capital per worker.
c. decreases. This decrease is larger at larger value of capital per worker.
d. decreases. This decrease is smaller at larger value of capital per worker.
b
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Suppose an oligopolistic market has only two firms. Which of the following is true if the firms refuse to cooperate?
a. Allocative efficiency will be achieved. b. Competition for market share will increase. c. Decision making will be mutually independent. d. Prices will be at the same level as in a monopoly market.
If the principal has full information, production efficiency without supervision can occur with
A) a fixed fee rental contract. B) a profit-sharing contract. C) an incentive-compatible contract. D) All of the above.
What has been the rationale made over the years to justify government subsidies for agriculture?
What will be an ideal response?
The demand for shoes will likely be price ________ while the demand for Sketchers Go Walk walking shoes will likely be price ________.
A. elastic; elastic B. inelastic; inelastic C. inelastic; elastic D. elastic; inelastic