Apple Computer is more likely to continue to use input markets rather than manufacture its own inputs internally when
a. the quality of inputs is difficult to determine
b. switching among input suppliers is easy
c. there are very few firms producing the input
d. the input is difficult to identify and define
e. transaction costs go up
B
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If a firm adopts a labor-saving piece of technology, it will:
A. increase the marginal product of labor. B. decrease the marginal product of labor. C. increase the marginal supply of labor. D. decrease the marginal supply of labor.
Dent 'n' Scratch Used Cars and Trucks employs 3 salesmen. Data for their sales last month are shown in this table: Cars SoldTrucks SoldLarry105Joe99Ralph312 Based on last month's data, Joe's opportunity cost of selling a car is ________ than Ralph's, and Joe's opportunity cost of selling a car is ________ than Larry's.
A. greater; greater B. less; less C. less; greater D. greater; less
Which barrier to entry results in the creation of a natural monopoly?
A. legal barriers like government franchises B. economies of scale C. ownership of a vital resource D. patents and copyrights
Thomas Malthus and David Ricardo believed that to increase agricultural output, people would be forced to
A. farm land more intensively, in which case the returns to successive increases in population would increase. B. farm land less intensively, in which case the returns to successive increases in population would diminish. C. farm land more intensively, in which case the returns to successive increases in population would diminish. D. farm land less intensively, in which case the returns to successive increases in population would increase.