Given input prices and the usual strategy of a profit-maximizing firm, efficient production occurs at
A. the highest isocost C for a given isoquant Q.
B. the lowest isocost C for a given isoquant Q.
C. the highest isoquant Q for a given isocost C.
D. the lowest isoquant Q for a given isocost C.
Answer: B
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Refer to Table 16.1. Consider the data in the table above (in billions of dollars) for an economy. Gross domestic product (in billions of dollars) for this economy equals
A) $2,700. B) $2,525. C) $2,350. D) $2,100.
For a perfectly competitive firm,
a. marginal revenue equals total revenue b. total revenue always exceeds total cost c. price always exceeds average total cost d. marginal cost always equals average cost e. the marginal revenue curve and the demand curve lie on top of each other
Alternate Outputs from One Day's Labor Input:
USA: 12 bushels of wheat or 3 yards of textiles. India: 3 bushels of wheat or 12 yards of textiles. From the data, the USA: a. has an absolute advantage over India in the production of textiles. b. has an absolute advantage over India in the production of wheat. c. has a comparative advantage in the production of textiles. d. should export textiles to India.
Members of the Board of Governors are
A. Elected by the people and confirmed by the president. B. Appointed by the president and confirmed by the Senate. C. Appointed by the Senate and confirmed by the House of Representatives. D. Selected by each new president at the same time the cabinet is chosen.