A short-run production function was estimated asQ = ?0.002L3 + 0.16L2At what level of labor usage does the maximum average product occur?
A. 20
B. 30
C. 40
D. 50
E. 60
Answer: C
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What is it called when the price paid for a variable input is less than its marginal revenue product?
A) bilateral monopoly B) monopsonistic exploitation C) monopolistic exploitation D) featherbedding
If products similar to the intermediate good can be bought externally, an approximation of the correct transfer price is
a. average costs b. average fixed costs c. average variable costs d. the market price
Suppose you observe that with a given supply curve, the Peruvian demand for Argentinean pesos steadily decreases. This will most likely mean:
a. the supply of Peruvian nuevos soles has increased on the foreign exchange market. b. the Argentinean peso will appreciate in value relative to the Peruvian nuevo sol. c. the Argentinean peso will depreciate in value relative to the Peruvian nuevo sol. d. the Peruvian demand for Argentinean goods has increased. e. the supply of Argentinean pesos has increased on the foreign exchange market.
Which of the following would prevent a market from being classified as perfectly competitive?
a. there are many buyers and sellers in the market b. it is easy for new firms to enter the market c. it is easy for existing firms to exit the market d. buyers perceive significant differences among the products of different sellers e. each buyer purchases only a tiny fraction of the total market quantity