The concept of minimizing the number of physical units of the inputs needed for a given amount of output is known as
a. technical efficiency.
b. the principle of diminishing marginal returns.
c. economic efficiency.
d. decreasing returns to scale.
a. technical efficiency.
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If Ben values good X more than good Y and Catherine values good Y more than good X a firm can increase its profits by
A) charging the same price for both goods. B) bundling the goods. C) selling the goods in a competitive market. D) charging one price per good.
Bob and Bill can make 16 toys each if they devote 8 working hours in a day. Further, Bob can repair 4 cars and Bill can repair 2 cars, if they devote 8 working hours in a day. What is the opportunity cost of repairing one car to Bill?
a. 10 toys b. 8 toys c. 16 toys d. 12 toys e. 4 toys
If new firms are currently entering a perfectly competitive market, which of the following is true?
a. Existing firms are losing money. b. Existing firms are earning positive economic profits. c. Existing firms are just breaking even. d. Impossible to predict.
A curve that shows all of the alternative consumption bundles that the consumer likes equally well is called:
A. a budget constraint. B. an indifference curve. C. an individual demand curve. D. a consumption bundle curve.