The production contract curve:
A. shows every efficient allocation of inputs between two firms in an Edgeworth box.
B. shows every efficient allocation of consumption goods in an Edgeworth box.
C. passes through the intersections between all pairs of isoquants in an Edgeworth box.
D. passes through the intersections between all pairs of indifference curves in an Edgeworth box.
A. shows every efficient allocation of inputs between two firms in an Edgeworth box.
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Which of these would NOT be a factor that would permit the existence of monopoly power?
A. High levels of sunk costs B. Control of a scarce resource C. Diseconomies of scale in the production of the product D. All of these responses are correct
In general, as productivity levels decrease, the potential for productivity growth
a. decreases. b. increases. c. remains the same. d. decreases if GDP decreases.
Refer to the graph. Using Qs for quantity supplied and P for price, which of the following equations correctly states the supply of this product?
What will be an ideal response?
(a) Fill in Table. (b) Is the firm a perfect or an imperfect competitor? Explain. (c) If the wage rate were $115, how many workers would be hired? How much would the total wage bill come to? (d) If the wage rate were $60, how many workers would be hired? How much would the total wage bill come to? (e) How many workers would be hired if the wage rate were $16? (f) How many workers would the firm want to hire if the wage rate were $0?
