If on a given product indifference curve a firm is using an insufficient (nonoptimal) amount of one of its inputs
a. output will be below optimal.
b. the MRP of the input will be below its price.
c. costs will not be minimal.
d. relative input prices need to change.
c
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The country of Southland produced $2,000 billion of output in one year. The population of Southland was 100 million, of whom 60 million were employed. What was average labor productivity in Southland?
A. $20 B. $33 C. $33,333 D. $20,000
The study of economics is best described as a study of
A) capitalism. B) the factors that influence the stock and bond markets. C) the choices made in producing goods and services. D) how people earn a living. E) coping with scarcity, and choices made as a result of scarcity in a society.
The figure above shows supply curves for soft drinks. Suppose the economy is at point a. A movement to point c could be the result of
A) a decrease in technology. B) a decrease in the relative price of a soft drink. C) an increase in the relative price of a soft drink. D) an increase in the money price of a soft drink.
Public goods are distinguished by two primary characteristics. What are they?
A) nonrivalry and nonexcludability B) market failure and high prices C) government intervention and low prices D) rivalry and exclusivity