If a production function has constant returns to scale, then if all inputs double so does production
a. True
b. False
Indicate whether the statement is true or false
True
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Figure 3-6
In Figure 3-6, assume this economy is currently operating at point D. What is the opportunity cost of moving to B?
A. About 200 bushels of wheat B. 200 bushels of soybeans C. Infinite, B cannot be produced at any cost. D. 0
Why do firms in oligopoly face a temptation to collude?
What will be an ideal response?
How would each of the following events affect Cheryl Shirker's supply of labor?
(a) Cheryl's firm announces a reorganization plan, in which she will get a big promotion and raise in six months. (b) Cheryl's speculative investment in plutonium futures pays off big, netting her a profit of $300 thousand. (c) Cheryl's father, who had planned to leave her a large bequest, must spend all his wealth on medical bills after a prolonged illness.
A conflict between an owner and a manager may occur when
A) the manager earns more when the firm has higher profits. B) the manager is seeking to maximize leisure time. C) the owner can easily observe the manager slacking off and punish him accordingly. D) the firm is very small and the manager must perform multiple tasks.