When variable inputs are added to a fixed input
A) output increases.
B) output can increase at an increasing rate.
C) output can increase at a decreasing rate.
D) all of these choices are possible.
D
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Dan owns one of the many bakeries in New York City. Which of the following events will lead to an increase in Dan's demand for the services of bakers? (i) The price of muffins increases. (Muffins are Dan's specialty.) (ii) Dan adds three new ovens to the kitchen area to help the bakers work faster. (iii) Local bakers form a union to protect themselves from low wages
a. (i) and (ii) only b. (ii) and (iii) only c. (i) and (iii) only d. (i), (ii), and (iii)
The point where the PPF intersects the vertical axis is
What will be an ideal response?
Which of the following arguments for trade protection contends that new domestic industries need support to establish themselves and survive?
A. The increased domestic employment argument. B. The cheap foreign labor argument. C. The diversification-for-stability argument. D. The infant industry argument.
Refer to the payoff matrix below. If Firm A adopts the low-price strategy, then Firm B would adopt the:
Answer the question based on the following payoff matrix for a duopoly in which the numbers indicate the profit in millions of dollars for each firm:
A. High-price strategy and earn $250
B. High-price strategy and earn $200
C. Low-price strategy and earn $325
D. Low-price strategy and earn $175