Suppose pigs (P) can be fed corn-based feed (C) or soybean-based feed (S) such that the production function is P = 2C + 5S. If the price of corn feed is $2 and the price of soybean feed is $5, what is the cost-minimizing feed combination producing P = 100?
a. C = 50
b. S = 20
c. C = 25, S = 10
d. All points on the P = 100 isoquant, including those listed in a-c would cost the same.
d
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An economy that contains a mixture of perfect and imperfect competition and of regulated and unregulated industries is a
a. command economy. b. mixed economy. c. traditional economy. d. laissez-faire economy.
Which of the following is not included in Nation A's financial account?
a. Foreign deposits of funds in savings accounts in Nation A. b. Purchases and sales of forestry and air rights. c. Foreign purchases of Nation A's Treasury bills. d. All the above.
When Ryan has an income of $2,000 . he consumes 30 units of good A and 50 units of good B. After Ryan's income decreases to $1,500, he consumes 23 units of good A and 55 units of good B. Which of the following statements is correct?
a. Both goods A and B are normal goods. b. Both goods A and B are inferior goods. c. Good A is a normal good, and good B is an inferior good. d. Good A is an inferior good, and good B is a normal good.
If the cross-price elasticity between goods X and Y is positive, we know the goods are:
A. substitutes. B. complements. C. inelastic. D. inferior goods.