The production decision is another term for the investment decision.
Answer the following statement true (T) or false (F)
False
A production decision is the selection of the short-run rate of output (with existing plants and equipment), including shutdown (producing zero) or production; an investment decision is the long-run decision to build, buy, or lease plants and equipment, or to enter or exit an industry.
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A ____ total cost function implies that marginal costs ____ as output is increased
a. linear; increase linearly b. quadratic; increase linearly c. cubic; increase linearly d. a and b e. none of the above
The earnings of all employees in a competitive economy would be equal if
a. all individuals were homogeneous. b. all jobs were equally attractive. c. workers were perfectly mobile among jobs. d. all of the above are true.
The transactions demand for money
A. varies inversely with nominal Gross Domestic Product (GDP). B. varies directly with nominal Gross Domestic Product (GDP). C. varies negatively with nominal Gross Domestic Product (GDP). D. is unrelated to nominal Gross Domestic Product (GDP).
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. The economy is currently at Point A. The opportunity cost of moving from Point A to Point B is the
A. 30 LCD televisions that must be forgone to produce 60 additional OLED televisions. B. 90 LCD televisions that must be forgone to produce 20 additional OLED televisions. C. 30 LCD televisions that must be forgone to produce 20 additional OLED televisions. D. 120 LCD televisions that must be forgone to produce 40 additional OLED televisions.