Cost minimization suggests that two inputs should be employed to the point where
A. the marginal cost of each input is identical.
B. the extra contribution to physical output of the inputs is identical.
C. the marginal product per dollar spent on each input is identical.
D. the marginal revenue product of each input is identical.
Answer: C
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Given the situation in the matrix shown, we can predict that Firm A's profits will be:
This prisoner's dilemma game shows the payoffs associated with two firms, A and B, in an oligopoly and their choices to either collude with one another or not.
A. $50 million.
B. $100 million.
C. $200 million.
D. $300 million.
Which of the following is an example of an individual motivated by self-interest?
a. a student volunteering at a soup kitchen b. an attorney providing free legal service to low income families c. a man buying a new Camaro d. all of the above
Which of the following is an example of a resource?
a. Land b. Capital c. Entrepreneurship d. All of the above are resources
The "beauty premium" can be explained by the fact that
a. marginal productivity in all occupations has a physical dimension. b. in some occupations, physical attractiveness of workers may enhance the value of their marginal product. c. beauty acts as an implicit signal of innate intelligence. d. beautiful people are likely to reflect "good breeding."