Isoquants slope downward because:
A. the marginal rate of substitution increases.
B. as less of one input is used, more of another must be used if costs are to remain constant.
C. average total costs decline.
D. as less of one input is used, more of another must be used if output is to remain constant.
Answer: D
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Conrad and Meyer (1958) counter Fogel and Engerman's (1974) claim that slave breeding was a myth by arguing that any profit-maximizing slave owner would consider slave breeding as long as:
(a) The expected rate of return from slave sales fell below the costs of rearing the slave to the age of sale. (b) Slavery was an irrational institution. (c) The expected rate of return from slave sales exceeded the costs of rearing the slave to the age of sale. (d) Slavery was an immoral institution.
Which of the following statements correctly uses the concept of opportunity cost in decision making?
I. "Because my secretary's time has already been paid for, my cost of taking on an additional project is lower than it otherwise would be." II. "Since NASA is running under budget this year, the cost of another space shuttle launch is lower than it otherwise would be." A) I is true, and II is false. B) I is false, and II is true. C) I and II are both true. D) I and II are both false.
In the long run, a monopolistically competitive firm's demand curve must be tangent to its average cost curve
a. True b. False Indicate whether the statement is true or false
After his father lost his job, Jack was forced to drop out of school. In this scenario unemployment resulted in _____
a. a loss of lifetime earnings b. a loss of human capital c. deterioration of health d. a loss of social cohesion