Which of the following statements is TRUE?
I. A firm that is not economically efficient does not maximize profit.
II. Economic efficiency depends on the relative costs of resources.
III. A technological efficient firm is also economically efficient.
A) I only
B) II only
C) II and III
D) I and II
D
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In 2011, U.S. GDP was
A) $15 trillion using the expenditure approach. B) $15 trillion using the income approach. C) $15 trillion using the expenditure approach and $14 trillion using the income approach. D) $16 trillion using the income approach and $14 trillion using the expenditure approach. E) both A and B are correct.
Suppose there is a simple tax system that says you pay 10% for income up to $10,000, 25% for income between $10,000 and $50,000, and 35% for all income above $50,000. Mr. Campbell has income of $72,000. Mrs. Campbell has income of $55,000.
(A) What is Mr. Campbell's individual tax liability? Mrs. Campbell's? (B) What is their liability if they file a joint return? (C) Is there a marriage penalty? If so, how much is it?
The ________ of the term structure of interest rates states that the interest rate on a long-term bond will equal the average of short-term interest rates that individuals expect to occur over the life of the long-term bond, and investors have no
preference for short-term bonds relative to long-term bonds. A) segmented markets theory B) expectations theory C) liquidity premium theory D) separable markets theory
If Mousey Mike does not tattle, what would Bratty Brad's best response be
a. Hit b. Not hit c. Run d. Hide