What is the profit-maximizing condition for a firm when trying to decide how much land touse forproduction?
What will be an ideal response?
A firm will pay for and use land as long as the revenue earned from selling the product produced on that land is sufficient to cover the price of the land. This means that the firm will use land up to the point where the marginal revenue product of land is equal to the price of land.
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What are fiscal and monetary policies? Do they have an immediate effect on the AD curve or the SAS curve?
What will be an ideal response?
It is impossible for one person to have a comparative advantage in all tasks
a. True b. False
Very recently, the debt-to-GDP ratio has been:
a. higher than usual. b. lower than usual. c. stabilized. d. volatile.
When competition is present and private ownership rights are clearly defined and securely enforced by the legal system, business firms will have a strong incentive to
a. innovate and develop better products and lower cost production methods. b. spend time attempting to plunder (take) the resources of others. c. engage in wasteful activities that increase the cost of producing goods and services. d. use resources during the current period rather than conserving them for the future.