A Cobb-Douglas production function is
A) a production function for the textile industry.
B) a particular production function that fits the data well.
C) a production function applicable in the service industry.
D) the production function that Henry Ford applied in his firm.
B
You might also like to view...
At the profit-maximizing level of output, the amount by which the firm can mark up price is:
A) inversely related to the price elasticity of demand for item in question. B) directly related to the price elasticity of demand for item in question. C) totally unrelated to the price elasticity of demand for item in question. D) equal to the ratio of the marginal and average costs of production.
If rational expectations hold, aggregate demand policy actions only affect output if
a. they are predictable. b. they are unpredictable. c. they are systematic. d. they are permanent. e. both b and d.
Monopolistically competitive firms are like perfectly competitive firms in that they both sell homogeneous products.
Answer the following statement true (T) or false (F)
Suppose the economy had been producing at potential output but is now experiencing a recession. Which of the following are discretionary fiscal policies that could bring the economy closer to potential output? Check all that apply.
A. Raising interest rates B. A tax increase C. Additional spending on national park facilities D. A tax cut