As you move down an isoquant:
A. production remains technically efficient.
B. the marginal rate of substitution does not change.
C. more of all inputs must be used to keep output constant.
D. production remains economically efficient.
Answer: A
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Inflation caused by continually decreasing short-run aggregate supply is
A) demand-pull inflation. B) demand-push inflation. C) cost-push inflation. D) cost-pull inflation.
In the above table, for Mary the opportunity cost of producing a dress is ________, and the opportunity cost for Mark of producing a dress is ________
A) 1 1/2 jackets; 2/3 of a jacket B) 1 1/2 jackets; 2 1/2 jackets C) 1 1/4 jackets; 1/2 of a jacket D) 1 jacket; 1 jacket E) 1 dress; 1 dress
In the figure above, the marginal cost of the fifth computer is
A) 0 television sets per computer. B) 4 television sets per computer. C) 20 television sets per computer. D) 35 television sets per computer.
In oligopoly, any action by one firm to change price, output, or quality causes
A) a reaction by other firms. B) no reaction from the other firms. C) a profit gain for the other firms. D) loss of market share by the acting firm.