Production indifference curves generally have a positive slope
a. True
b. False
Indicate whether the statement is true or false
False
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Suppose there are only two goods: lettuce and grapes. In California, a head of lettuce sells for 50¢ and a bunch of grapes sells for $1. In Nebraska, 25¢ must be added to these absolute prices to cover transportation costs. How do these transportation costs affect the relative prices of lettuce and grapes?
a. The transportation costs do not affect the relative prices of lettuce and grapes. b. The relative prices of lettuce and grapes are both higher when transportation costs are added. c. The addition of transportation costs makes the relative price of grapes higher and the relative price of lettuce lower. d. The transportation costs raise the relative price of lettuce but lower the relative price of grapes.
Refer to the table below. What is the profit-maximizing total quantity for Just Juice to produce?
Just Juice produces whole fruit juice that it sells in single bottles. Just Juice is a multi-plant firm with market power. The above table summarizes the total marginal cost of production at various output levels in Just Juice's two plants with the corresponding marginal revenue (dollars per bottle) and market demand (price per bottle).
A) 530
B) 955
C) 850
D) 1,100
How did the Fed's conduct of open market operations change during the economic crisis of 2008?
a. Open market operations are no longer the most common tool that the Fed utilizes. b. The Fed now buys and sells a broader range of assets than only government securities. c. The Federal Open Market Committee cannot act without the approval of the Treasury. d. The Fed now must have adequate funds available before purchasing government securities.
If the elasticity of demand for the latest American Idol album is 1.4, this means
A. a 1 percent increase in the price leads to a 14 percent decrease in quantity demanded. B. few substitutes for the American Idol album exist. C. a 5 percent increase in the price leads to a 7 percent decrease in quantity demanded. D. a 10 percent decrease in the price leads to a 140 percent increase in quantity demanded.