Entrepreneurs have a strong incentive to
a. discover new production techniques that reduce costs.
b. introduce new products that are highly valued relative to their cost.
c. produce goods that are valued more highly than the resources required for their production.
d. do all of the above.
D
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When a game has more than one Nash equilibrium,
a. at least one of them will be Pareto optimal. b. they will all tend to be unstable. c. they must provide the same total payoff to the players. d. it is difficult to predict which of them will actually occur.
The Board of Governors of the Federal Reserve System does NOT
A) consist of seven members with fourteen-year terms. B) include the presidents of the twelve Federal Reserve Banks. C) utilize a system of rotations so that a position comes open every two years. D) consist of members whose appointments have been approved by the Senate.
Average fixed cost is equal to
A) the amount of total cost that does not change as output changes in the short run. B) fixed cost divided by the quantity of output produced. C) average total cost plus average variable cost. D) fixed cost multiplied by the quantity of output produced.
Potential GDP is the quantity that an economy can produce by:
a. fully employing its existing levels of labor, physical capital, and technology. b. partially employing its existing levels of labor, physical capital, and technology. c. fully employing its future levels of labor, physical capital, and technology. d. partially employing its future levels of labor, physical capital, and technology.