Business people often use "hunches" and intuition to make decisions regarding what to produce
a. True
b. False
Indicate whether the statement is true or false
True
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Refer to Table 12-1. If the market price of each camera case is $8, what is the profit-maximizing quantity?
A) 300 units B) 400 units C) 500 units D) 600 units
Having a goal that does not include making a profit can often explain why the unprofitable idea has not been implemented. These types of ideas may include:
A. promoting social justice. B. helping the poor. C. making great art. D. All of these.
If all inputs are raised by equal percentages and output increases by a larger percentage, there are decreasing returns to scale
Indicate whether the statement is true or false
Output for a simple production process is given by Q = KL, where K denotes capital and L denotes labor. The price of labor is $10 per unit and the price of capital is $2 per unit.If at the current level of production the marginal product of labor is 4 while the marginal product of capital is 2, then in order to minimize your costs of production you should use
A. more of both inputs. B. the same amount of both inputs. C. more capital and less labor. D. more labor and less capital.