Cost minimization is the process of making optimal use of all of the inputs whose quantities are
a. set in the short run.
b. set in the intermediate run.
c. set in the long run.
d. variable in the short and long run.
d
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Which of the following would you expect to result in faster economic growth?
A) a decrease in research and development spending B) a decrease in the stock of capital per worker C) a decrease in the average level of education in the economy D) the invention of new computers that increase labor productivity
Identify the correct statement
a. Demand is the total quantity of a product that people are willing, even if unable, to purchase at a given price. b. Demand for a product is the same as the quantity demanded of a product. c. Demand represents the different quantities of a good or service that provides consumers the same amount of utility. d. Demand is the quantity of a product that people are willing and able to purchase at different prices. e. Demand is the quantity of a product that producers are willing to produce at a particular price.
If new regulations make it illegal to sell older model electrical appliances, then
a. producers of new models that meet the regulations will see demand for their output rise. b. consumers who might have purchased to older appliances are clearly made better off. c. consumers are helped, but the profits of appliance producers are not affected. d. consumers will certainly gain from the change.
What is the drawback of analyzing only one round of effects and leaving the feedback effects unobserved?
a. Not all three markets will be analyzed. b. The qualitative effect might be offset by feedback effects. c. The quantitative effect might be overestimated or underestimated. d. All of the above