When several resources are combined in the production of a good,
a. it is easy to determine the marginal products of the various resources
b. the marginal contribution of each input often cannot be observed
c. allocating revenue among the various resources is easy
d. there is more competition for each of the resources used
e. there is less competition for each of the resources used
B
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Profit maximization occurs when MC = MR.
Answer the following statement true (T) or false (F)
You hold a put option on December corn with a strike price of $4.00/bu. The December corn futures price is $4.75/bu. The intrinsic value of the option is:
A. $4.00/bu B. $0.00/bu C. $0.75/bu D. -$0.75/bu
Assume the economy's consumption and saving schedules simultaneously shift downward. This must be the result of:
A. an increase in disposable income. B. an increase in household wealth. C. an increase in personal taxes. D. the expectation of a recession.
As you move down the production possibility frontier, the absolute value of the marginal rate of transformation
A. increases. B. initially decreases, then increases. C. decreases. D. initially increases, then decreases.