If the single-input producer choice set is convex, the marginal product of labor curve must have a negative slope that is getting steeper with increases in labor input.
Answer the following statement true (T) or false (F)
False
Rationale: It must be downward sloping -- but it could be increasingly shallow as labor input increases. As long as it is downward sloping, the slope of the production frontier is getting shallower -- giving us the convexity of the producer choice set.
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A central bank's international reserves consists of its holdings of
A) gold. B) silver and gold. C) foreign assets and gold. D) domestic assets and precious metals. E) foreign and domestic currency holdings.
An increase in the number of tomato producers will
a. increase market supply because the price of tomatoes will rise b. increase market supply because market demand will increase as more tomatoes areproduced c. increase market supply because market supply is the sum of all individual tomato producers' supply curves d. increase market demand but leave market supply unchanged e. increase the price of tomatoes
What is the shape of the monopolist's marginal revenue curve?
a. a downward-sloping line that is identical to the demand curve b. a downward-sloping line that lies below the demand curve c. a horizontal line that is identical to the demand curve d. a horizontal line that lies below the demand curve
According to most economists, which one of the following would be the best public policy?
A. Require businesses to reduce pollution by a level prescribed by the government. B. Zero tolerance for pollution. C. Rely on private enterprise to reduce pollution as it is ultimately in its best interest. D. Provide business firms with incentives to curb their pollution.