A firm is producing output less than the output associated with the minimum point on the firm's short run average variable cost curve. At this level of output the firm uses its fixed capital input ________ and its variable labor input ________.
A. efficiently; efficiently
B. inefficiently; inefficiently
C. efficiently; inefficiently
D. inefficiently; efficiently
Answer: B
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An individual firm has little incentive to voluntarily internalize any external costs it was creating because: a. it would shift its cost curves downward
b. it would put it at a competitive disadvantage compared to its rivals. c. it would have to increase output to make up for the added costs. d. they do not care at all about other people.
The economic rent analysis does not apply to any factor
A. except land. B. whose supply curve is vertical. C. whose supply curve is horizontal. D. whose quantity supplied is fixed.
The increased level of excess reserves that many banks held in 2008 made traditional monetary policy less effective.
Answer the following statement true (T) or false (F)
Which of the following is a microeconomic question?
A. Should the government decrease unemployment benefits to reduce the unemployment rate? B. Why do some countries have higher inflation rates than other countries? C. Should the government subsidize corn farmers to encourage the production of ethanol? D. Should congress decrease taxes to help stimulate the economy?