All points on the firm's expansion path
a. give the firm the maximum possible profit.
b. minimize the firm's cost of producing some level of output.
c. have the same long-run average cost.
d. make the marginal product of labor equal to the marginal product of capital.
b. minimize the firm's cost of producing some level of output.
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Which of the following best describes comparative advantage?
A) using the fewest number of resources to produce a given amount of output B) being able to produce more output than any other country C) having the largest number of resources compared to other countries D) forgoing the fewest units of one product to produce a unit of another product E) It is the same as absolute advantage.
Suppose your neighbor owns a restaurant and boasts that he is able to turn a handsome accounting profit because of his low labor costs. He attributes this to the fact that he uses his sons and daughters as cooks and waiters
His point is that he offers them below-market wages. How would you respond to your neighbor's statement? What would you tell him to expect as his children continue to work for him while they are in college and beyond?
Which of the following statements presents accurate information about the Napoleonic Wars (1793-1815)?
a. The major adversaries in the Wars were England and Canada. b. The peace treaty that ended the Wars is known as the Essex Decision. c. The Wars led to increased demand for American shipping services. d. During the temporary peace of 1801-1803, demand for U.S. re-exports increased.
Collusion is most likely to succeed when there are
A. few firms and low barriers to entry. B. many firms and low barriers to entry. C. few firms and high barriers to entry. D. many firms and high barriers to entry.