The production function is concave in labor because
A) the contribution to production of each additional unit of labor decreases.
B) the marginal product of labor is increasing.
C) the marginal product of capital is decreasing.
D) the labor demand is downward sloping.
A
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Income elasticity will be positive for:
A. all normal goods. B. all inferior goods. C. only necessities. D. only luxury goods with substitutes.
The expression, "There's no such thing as a free lunch," implies that
a. everyone has to pay for his own lunch. b. the person consuming a good must always pay for it. c. opportunity costs are incurred when resources are used to produce goods and services. d. no one has time for a good lunch anymore.
Clooney Brothers Inc sells wheat in a perfectly competitive market where the market price is $5.28 per bushel. It produces 250 bushels of wheat per month and has an average total cost of production of $3.50 . Which of the following is true in this scenario? a. The firm will break even
b. The firm will earn a profit of $445. c. The firm will suffer a loss of $600 and decide to shut down. d. The firm will suffer a loss of $200 and decide to stay open.
Changes in demand have a large effect on the price of gold because the:
A. supply of gold is relatively inelastic. B. demand for gold is relatively inelastic. C. supply of gold is relatively elastic. D. demand for gold is relatively elastic.