Suppose the cost of producing two goods, x and y, can be represented as C = ax + by + cxy. If there are economies of scope, then which of the following must be TRUE?
A) c > 0
B) a + b = -c
C) c = 0
D) c < 0
D
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Opportunity cost cannot be measured in money terms, only in conceptual terms.
Answer the following statement true (T) or false (F)
When money is accepted as payment for a good or service, it is being used as a
A) medium of exchange. B) mechanism for transforming current purchases into future purchases. C) store of value. D) unit of account.
In Figure 45.5, where one union is bargaining against one employer, the highest possible negotiated wage paid to workers will be 
Figure 45.5
A. W*. B. W2. C. W1. D. an undetermined point between W1 and W2.
Which of the following labor demand curves will be the least elastic?
A. The long-run demand for labor for an elastic product B. The short-run demand for labor of a firm with L-shaped Isoquants C. The short-run demand for labor for an inelastic product D. The long-run demand for labor for an inelastic product