If production technologies are homothetic, all cost-minimizing production plans lie on the same ray from the origin for a given set of input prices.
Answer the following statement true (T) or false (F)
True
Rationale: Cost-minimizing input bundles lie at a tangency between isoquants and isocosts -- and homotheticity implies that slopes of isoquants are unchanged along rays from the origin.
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A downward sloping demand curve indicates that
A) individuals all have the same valuation of the same product. B) individuals have different valuations of the same product. C) individuals have no valuations of a particular product. D) certain individuals are uninformed about certain aspects of the product.
Which agency was created by Congress in 1914 to investigate and regulate unfair methods of competition?
a. the Department of Justice b. the Federal Trade Commission c. the Interstate Commerce Commission d. the General Accounting Office e. the Council on Competitiveness
To judge the size of government debts and deficits, we should use real values
a. True b. False
Central planning refers to
a. markets guiding economic activity. Today many countries that had this system have abandoned it. b. markets guiding economic activity. Today many countries that did not have this system have implemented it. c. government guiding economic activity. Today many countries that had this system have abandoned it. d. government guiding economic activity. Today many countries that did not have this system have implemented it.