Other things the same, which of the following would increase productivity?
a. an increase in either human or physical capital
b. an increase in human capital but not an increase in physical capital
c. an increase in physical capital but not an increase in human capital
d. neither an increase in human capital nor an increase in physical capital
a
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Show that increasing returns to scale can co-exist with diminishing marginal productivity. To do so, provide an example of a production function with IRTS and diminishing marginal returns
What will be an ideal response?
Suppose that each serving of Mac & Cheese costs $0.50 to make no matter how many servings are produced. This means that the price elasticity of supply for Mac & Cheese is ________ and the supply curve is ________.
A. infinite; perfectly elastic B. zero; perfectly elastic C. infinite; perfectly inelastic D. one; perfectly inelastic
Rents
A) have no useful economic purpose. B) have an allocative function since they help decide to which use a resource will be put. C) have a distributional function since they affect incomes, but have no allocative function since the resource is in fixed supply. D) have an economic purpose only if they are taxed and provide revenue to the government.
The Slippery Slope Company manufactures only snow skis. In 2016 Slippery Slope manufactured 10,000 snow skis, but sold 12,000 snow skis. In 2016 Slippery Slope's change in inventory was ________ snow skis.
A. -8,000 B. -2,000 C. 2,000 D. 22,000