To derive the marginal physical product of capital,
a. all other resources must be held fixed
b. capital must be held fixed
c. all resources, including capital, must be held fixed
d. all resources are variable
e. output must be held fixed
A
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What will be an ideal response?
BioMed Pharmaceutical has held a patent on an important heart medication called Heartex, but the patent will expire in the coming year. After the patent expires, other firms can legally sell the same medication as a generic drug product
What will happens to the demand for Heartex and to the Lerner index for this product as the generic drugs enter the market? A) Demand becomes less elastic, Lerner index increases B) Demand becomes less elastic, Lerner index declines C) Demand becomes more elastic, Lerner index increases D) Demand becomes more elastic, Lerner index declines
Which of the following is most accurate about the economic conditions in the 1920s?
a. The large increases in demand for products generated significant cyclical unemployment. b. There was a significant decrease in the number of hours worked per week. c. Agriculture was the leading growth sector of the economy. d. The net migration pattern was from urban to rural.
The demand curve for capital:
a. shows the positive relation between capital usage and the quantity of capital demanded. b. shows the positive relation between aggregate output and the quantity of capital demanded. c. shows the negative relation between rate of inflation and the quantity of capital demanded. d. shows the positive relation between technological change and the quantity of capital demanded. e. shows the negative relation between price of capital and the quantity of capital demanded.