The slope of a typical isoquant is negative because to produce a given output, a producer
A) can use less of one input only if the productivity of that input increases
B) will use more of one input only if the price of that input falls.
C) will use more of one input only if it uses more of another.
D) can use less of one input only if it uses more of another.
D
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A supply curve:
a. has a negative slope. b. is based on the assumption of a stable demand curve. c. illustrates the negative relationship between price and quantity supplied. d. illustrates the positive relationship between price and quantity supplied. e. shifts about in random fashion.
If both the marginal cost and the average variable cost curves are U-shaped, at the minimum point of the average total cost curve, the marginal cost curve must be: a. greater than average variable cost. b. less than average variable cost
c. equal to average variable cost. d. at its minimum.
As the amount of capital to laborers increases, labor productivity diminishes.
Answer the following statement true (T) or false (F)
Falling output, in the short run, could be due to:
A. an increase in short-run aggregate supply. B. a reduction in aggregate demand. C. an increase in long-run aggregate supply. D. an increase in aggregate demand.