Suppose MRTS is not the same across all producers. In this case, the economic outcome is not fully efficient because:
A) exchange is inefficient.
B) the use of inputs in production is inefficient.
C) the mix of outputs in inefficient.
D) none of the above
B
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Assume a firm reduces its cost by shifting from paychecks to payroll cards, which are stored-value cards onto which the companies can download employees' wages and salaries electronically. If the only factor of production the firm varies in the short run is the number of hours worked by people already on its payroll, would the shift from paychecks to payroll cards reduce the firm’s total fixed costs or its variable costs?
A. Since the wages paid to? employees, the? firm's variable labor? input, have not? changed, variable costs are unaffected. If the switch from issuing paychecks to payroll cards is? cost-reducing, this change will cut its fixed costs of meeting its payrolls. B. Since the number of hours worked is? variable, the variable cost of processing the payroll? changes; therefore, the cost savings must come from a reduction in variable costs in the short run. C. Since the number of hours worked is? variable, the variable cost of processing the payroll? changes; therefore, the cost savings must come from a reduction in variable costs in the long run. D. Since the wages paid to? employees, the? firm's variable labor? input, have? changed, if the switch from issuing paychecks to payroll cards is? cost-reducing, this change will cut its variable costs of meeting its payrolls.
The money demand curve, against possible levels of interest rates, has a
A) negative slope. B) zero slope. C) positive slope. D) positive slope for low levels of money demand, and a negative slope for high levels of money demand.
Suppose the demand for good X is given by Qdx = 20 - 4Px + 2Py + M. The price of good X is $5, the price of good Y is $15, and income is $150. Given these prices and income, how much of good X will be purchased?
A. 220. B. 160. C. 180. D. None of the statements associated with this question are correct.
A market situation in which there are very few sellers is
A. perfect competition. B. monopolistic competition. C. oligopoly. D. monopoly.