If a firm is producing a given level of output in an economically efficient manner, then it must be the case that
A. this is the lowest cost method of producing that output.
B. each input is producing its maximum marginal product.
C. this output level is the most that can be produced with the given level of inputs.
D. both a and c
E. none of the above
Answer: D
You might also like to view...
When there is an expansionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; expand B. increase; raise; decline C. decline; lower; decline D. decline; raise; decline
When Dale buys a new computer for $1,000 using a credit card,
A) his bank account decreases by $1,000. B) he is taking out a loan for $1,000. C) the credit card is acting as money. D) the money supply decreases by $1,000. E) the credit card is performing the function of an unit of account.
Social Security contributions are a tax on labor
a. True b. False
The minimum point on the marginal cost curve corresponds to the:
a. maximum point on the total cost curve. b. minimum point on the total cost curve. c. inflection point on the total variable cost curve. d. midpoint of the total cost curve.