The rate at which one input can be reduced per additional unit of the other input, while holding output constant, is measured by the
A) marginal rate of substitution.
B) marginal rate of technical substitution.
C) slope of the isocost curve.
D) average product of the input.
B
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Christy's Haircuts, the sole supplier of haircuts in a small town, faces the demand schedule shown in the table above. What is Christy's marginal revenue from the 25th haircut?
A) zero B) $5.00 C) $17.50 D) $50.00
Which of these is not a beneficial supply shock?
a. An abundant harvest that increases food supplies b. The discovery of natural resources c. Reductions in business taxes d. Technological advances e. Establishment of the Occupational Safety and Health Administration (OSHA)
Each year around July 4 the town of Flagston has a controversy over how big a fireworks display they should have on the holiday. The three citizens have the demand functions for fireworks that are shown here. The cost per firecracker is $18. Elmer has the demand function P = 20 - Q. Ethel's demand equation is P = 12 - .6Q, and Edith has the demand P = 8 - .4Q.What is the total community demand equation for the fireworks display?
What will be an ideal response?
The production possibility frontier represents
A. the ability of the GDP to grow relative to other countries' GDPs. B. the shifting of priorities to meet demand. C. the different possible combinations of output. D. demand tempered by inflation.