Refer to Figure 6.3. The situation pictured is one of
A) constant returns to scale, because the line through the origin is linear.
B) decreasing returns to scale, because the isoquants are convex.
C) decreasing returns to scale, because doubling inputs results in less than double the amount of output.
D) increasing returns to scale, because the isoquants are convex.
E) increasing returns to scale, because doubling inputs results in more than double the amount of output.
C
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The amount of frictional unemployment depends on
A) the phase of the business cycle. B) the time of the year. C) international competition. D) demographic factors and unemployment benefits. E) Both answers A and B are correct.
According to the above figure, the profit-maximizing output for this monopolist is found directly below the letter
A) R. B) M. C) P. D) N.
If you are willing to sell your car business for $500,000 and someone offers you $420,000 for it, this transaction will generate:
a. There is no surplus created b. $80,000 worth of seller surplus and unknown amount of buyer surplus c. $40,000 worth of buyer surplus and $40,000 of seller surplus d. $80,000 worth of buyer surplus and unknown amount of seller surplus
An efficiency loss (or deadweight loss) declines in size when a unit of output is produced for which:
A. marginal cost exceeds marginal benefit. B. maximum willingness to pay exceeds minimum acceptable price. C. consumer surplus exceeds producer surplus. D. producer surplus exceeds consumer surplus.