In a simple economy (no government), the vertical distance between the consumption function and the expenditure schedule measures
a. undesired inventory depletion.
b. planned investment
c. undesired investment.
d. unintended investment.
b
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Studies and recent experience suggest that there is considerable potential for substitution between doctors and nurses in the production of health care services
Indicate whether the statement is true or false
Which of the following about price discrimination is true?
a. A price-discriminating seller will charge consumers with an elastic demand a lower price than consumers with an inelastic demand. b. A firm must face a horizontal demand curve for its product in order to engage in effective price discrimination in a market. c. Price discrimination always harms consumers and helps sellers in the short run but in the long run, consumers benefit at the expense of sellers. d. A seller must have a monopoly in order to gain from price discrimination.
Suppose that the firm's only variable input is labor. When 50 workers are used, the average product of labor is 50 and the marginal product of labor is 75. The wage rate is $80 and the total cost of the fixed input is $500.What is average variable cost?
A. $10.00 B. $0.63 C. $1.60 D. $3.20 E. none of the above
A firm is producing output less than the output associated with the minimum point on the firm's short run average variable cost curve. At this level of output the firm uses its fixed capital input ________ and its variable labor input ________.
A. at a level higher than the lowest average cost; at a level higher than the lowest average cost B. at a level higher than the lowest average cost; at the lowest average cost C. at the lowest average cost; at the lowest average cost D. at the lowest average cost; at a level higher than the lowest average cost