The production function is concave in capital because
A) the contribution to production of each additional unit of capital decreases.
B) the marginal product of capital is increasing.
C) the marginal product of labor is decreasing.
D) the cost of loans increases with their quantity.
A
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Every cost-minimizing producer is profit-maximizing.
Answer the following statement true (T) or false (F)
Economists who focus their analyses on the effects of a change in the money supply and velocity are called
A. realists. B. Keynesians. C. supply siders. D. monetarists.
Average total cost is always ____________ average variable cost, but as output rises, the difference between them ____________.
A. greater than; widens B. less than; widens C. greater than; narrows D. less than; narrows
If production involves constant opportunity cost, the production possibilities frontier
A. is “bowed inward.” B. is a straight line. C. is “bowed outward.” D. is a wavy line. E. has an unpredictable shape.