The return to any factor of production that is in ________ is pure rent.

A. fixed supply
B. variable demand
C. fixed demand
D. variable supply


Answer: A

Economics

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The marginal product of new capital depends on ________ and ________.

A. productivity of capital; relative price of the firm's output B. relative price of the firm's output; real interest rate C. productivity of new capital; real interest rate D. price of new capital goods; real interest rate

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Which of the following is TRUE?

A) MPC - MPS = 1 B) MPC + MPS = 1 C) MPC * MPS = 1 D) MPC / MPS = 1

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According to the law of ______, a chocolate cake will provide less satisfaction with each successive slice consumed.

a. substitution b. income c. consumer equilibrium d. diminishing marginal utility

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The kinked-demand curve model of oligopoly:

A. assumes a firm's rivals will ignore any price change it may initiate. B. suggests a firm's rivals will ignore a price cut but match a price increase. C. assumes a firm's rivals will match any price change it may initiate. D. suggests small changes in unit costs will have no effect on equilibrium price and output.

Economics