Given that energy is an input in production, the development of a cheaper source of energy will result in:
a. a lower price level and a lower amount of production.
b. a higher price level and a higher amount of production.
c. a lower amount of production at every price level.
d. a higher amount of production at every price level.
e. a lower profit at every price level.
d
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Short-run cost functions are estimated using
A) time-series regression analysis. B) cross-sectional regression analysis. C) nominal cost data. D) present value cost data.
What is the standard deviation of the payoff from an investment that yields $1,000,000 with a probability of 0.001 and $0 with a probability of 0.999?
A. $998,001,000 B. $999,000 C. $316.07 D. $31,606.96
The profit maximizing output level for a perfectly competitive firm is always where
A. P = AVC. B. MC = ATC. C. MC = AVC. D. P = MC.
Assume that the real rate of interest is 5 percent and a lender charges a nominal interest rate of 15 percent. If a borrower expects that the rate of inflation next year will be 10 percent and the actual rate of inflation next year is 10 percent,
A. the lender benefits from inflation, while the borrower loses from inflation. B. the borrower benefits from inflation, while the lender loses from inflation. C. neither the borrower nor the lender benefits from inflation. D. both the borrower and the lender lose from inflation.