A firm's rate of technical substitution is represented graphically by
a. the slope of the line connecting the origin with the relevant point on the isoquant.
b. the negative of the slope of the line connecting the origin with the relevant point on the isoquant.
c. the slope of the isoquant at the relevant point.
d. the negative of the slope of the isoquant at the relevant point.
d
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In a monopolistically competitive equilibrium, firms outside the industry could make at most zero profit by entering the industry.
Answer the following statement true (T) or false (F)
The text lists all of the following as outcomes of McDonald's experimental adoption of remote order taking except:
A) a decrease in accuracy in filling orders. B) increased speed at the drive through window. C) an increase in the costs associated with the drive-through portion of McDonald's business. D) employee dissatisfaction with constant monitoring and the stress of the process.
Competitive firms are able to set price above marginal cost when
A) the markup is less than the cost of going to another store. B) the markup is greater than the cost of going to another store. C) all consumers have full information. D) consumers know what other stores are charging.
If the price of tea rises relative to all other prices, consumers are likely to
A. buy less coffee. B. buy more tea. C. buy less coffee and less tea. D. buy less tea and more coffee.