As long as a firm can freely dispose of any extra inputs it may have:
A. its production function must slope downward.
B. its production function must be concave.
C. its production function must slope upward.
D. its production function must be convex.
C. its production function must slope upward.
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If the nominal interest rate on a one-year loan was 7%, the actual inflation rate over the year was 3% and the expected inflation rate over the year was 2.5%, then the expected real interest rate equals
A) 4.5%. B) 4.0%. C) 3.75%. D) 3.5%.
Refer to Figure 8.1. Holding other variables constant, an increase in the real wage rate will result in a
A) shift from curve D1 to curve D2. B) shift from curve D2 to curve D1. C) movement from point A to point B. D) movement from point B to point A.
The producer price index is considered a good predictor of future consumer prices because increases in input prices:
A. eventually make it to consumers when they buy the final product. B. are accounted for in PPI, and therefore this automatically adjusts the CPI. C. are observed first in the PPI, adjusting the CPI downward. D. are used by consumers to make decisions on what to buy.
If the number of people who want to sell off stocks are higher than those who want to buy it, the stock prices move up
a. True b. False Indicate whether the statement is true or false