What is a production function?
a. A relationship between a firm's profits and the technology it uses in its production processes.
b. A relationship between the cost and revenue of a firm associated with each possible output level.
c. A relationship between any combination of input services and the maximum attainable output from that combination.
d. The relationship between a worker's education and his or her ability to be a productive employee.
c. A relationship between any combination of input services and the maximum attainable output from that combination.
You might also like to view...
If a competitive firm is currently producing a level of output at which marginal cost exceeds marginal revenue, then
a. average revenue exceeds marginal cost. b. the firm is earning a positive profit. c. decreasing output would increase the firm's profit. d. All of the above are correct.
Higher rates of substitution are indicated by _______ values of the marginal rate of substitution.
A. small negative B. large negative C. small positive D. large positive
The problem of determining how goods and services should be produced is a problem of deciding:
A) the best combinations of resources to be used for producing goods and services. B) the extent to which imports should be reduced relative to exports. C) the extent to which exports should be reduced relative to imports. D) who owns the resources.
Refer to the diagrams, in which figures (a) and (b) show demand curves reflecting the prices Alvin and Elmer are willing to pay for a public good, rather than do without it. If the marginal cost of the optimal quantity of this public good is $10, the optimal quantity must be
What will be an ideal response?