How is the optimal level of input usage to produce a certain output identified with the help of isocosts and isoquants?
Let us assume a firm wants to produce 15,000 units of a good annually. The least-cost combination of inputs can be obtained from the point of tangency between the isoquant depicting an annual output of 15,000 units and the lowest isocost line achievable for this level of production.
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State whether each of the following goods is nonrival, nonexcludable, or both:
a. a botanical garden b. a public beach c. a congested interstate highway d. a toll bridge e. street lights
Average labor productivity is the
A) amount of workers per machine. B) amount of machines per worker. C) ratio of employed to unemployed workers. D) amount of output per worker.
If the government set a price floor at $24
A. there would a temporary surplus, then prices would fall to equilibrium.
B. there would be a permanent surplus, at least until the price floor was lifted.
C. the price floor would not have any effect on this market.
D. the price would rise to the equilibrium price.
The perfectly competitive, profit-maximizing rate of production
A. occurs at the point at which the difference between marginal revenue and marginal cost is maximized. B. is not measurable for a perfectly competitive firm. C. occurs at the point at which marginal revenue is equal to marginal cost. D. ignores the relation of total revenues and total costs.