Input demand functions that are calculated from profit functions differ from those calculated from cost functions because:
a. they assume cost-minimization.
b. they hold output constant.
c. they assume output price is constant.
d. they assume output is set at its profit-maximizing level.
d
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The ultimate purpose of the NAFTA free trade agreement is to balance trade between the member nations
Indicate whether the statement is true or false
Two-part pricing allows the monopoly firm to capture all of the potential consumer surplus generated by the sale of its product
Indicate whether the statement is true or false
A U.S. firm produces nail guns in the first quarter of 2010 and adds them to its inventory. In the second quarter of 2010 the firm sells the nail guns to a U.S. construction company. In which quarter(s) is (are) GDP higher?
a. the first and the second b. the first but not the second c. the second but not the first d. neither the first nor the second
An inferior good is a good
A. that consumers purchase more when their incomes are higher. B. of high quality. C. that has low quality. D. that consumers purchase less of when their incomes are higher.