Along the vertical axis of the production function we typically measure
a. revenue.
b. the marginal product of the input.
c. the quantity of input.
d. the quantity of output.
d
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The extent of ________ is one key factor in determining the extent of pass-through effects in an economy
A) relative market power B) exchange rate flexibility C) perfect elasticity in currency supply D) currency overhang
Bill uses his entire budget to purchase Pepsi and hamburgers, and he currently purchases no Pepsi and 6 hamburgers per week
The price of Pepsi is $1 per can, the price of a hamburger is $2, Bill's marginal utility from Pepsi is 2, and his marginal utility from hamburgers is 6. Is Bill's current consumption decision optimal? A) No, he should increase Pepsi consumption and reduce hamburger consumption. B) No, he should purchase more of both goods. C) Yes, the corner solution is best because his MRS is less than the price ratio. D) We do not have enough information to answer this question.
Milk costs $2 and the last unit provides $4 in marginal utility. Cheese costs $4 and the last unit provides $2 in marginal utility. Is this an efficient allocation of resources? If so, why? If not, why not?
What will be an ideal response?
The main instrument of control of public monopolies is the regulatory agency
a. True b. False Indicate whether the statement is true or false