The general rule for allocating a productive resource efficiently across different production activities of the same product, like fishing boats in the text case example, is to choose the allocation for which the
A. marginal product of the resource is the same in every activity.
B. total product of the resource is the same in every activity.
C. average product is equal to the marginal product in every activity.
D. average product of the resource is the same in every activity.
Answer: A
You might also like to view...
If a large hardware chain offers a ten percent discount to those currently serving in the military and veterans, this is an example of ________ and is ________.
A) price discrimination; only illegal if the practice substantially lessens competition or tends to create a monopoly B) conditional sales; always illegal per se C) price discrimination; always illegal per se D) conditional sales; only illegal if the practice substantially lessens competition or tends to create a monopoly
Production data for Joe's Pizza Parlor are as follows. For simplicity assume that labor is the only input. Each pizza sells for $5. Number of WorkersPizzas Baked Per Day00110218324430532How many workers will Joe hire if he must pay each one $35 a day?
A. 4 B. 2 C. 3 D. 1
Consider a town with three residents. The residents' demand curves for various acres of a public park are shown below.
The public is willing to pay $14 for the ________ acre of parkland.
A. 2nd B. 6th C. 4th D. 8th
In order to obtain an efficient allocation of resources worldwide
A. countries that have a lot of resources should ship resources to countries that do not have a lot of resources. B. no trade among countries should occur. C. countries that have a lot of resources should not trade since poorer countries cannot compete. D. each country should produce the good they have a comparative advantage in and then trade.