Production functions A and B result in the same average total costs of production. However, production function A is twice as capital intensive as production function B. In this case, all else constant:
A) marginal costs will be higher in A than they are in B.
B) marginal costs will be higher in B than they will in A.
C) because total costs are equal, marginal costs will be equal for the two production functions as well.
D) there is no way to say anything about the relative marginal costs of production in the two production functions without additional information.
B
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A nation's real GDP was $250 billion in 2014 and $265 billion in 2015. Its population was 122 million in 2014 and 125 million in 2015. What is the growth rate of real GDP per capita in 2015?
A. 5.0% B. 1.1% C. 3.4% D. 2.5%
A tax on imports equal to a percentage of the cost of those imports is known as
a. a specific tariff b. an ad valorem tariff c. a tax on luxury goods only d. an effective quota e. an ad valorem quota
In the above figure, if we begin at S1 and the Fed sells bonds
A. the price of bonds falls, and the interest rate rises. B. the price of bonds rises, and so does the interest rate. C. the price of bonds falls, and so does the interest rate. D. the price of bonds rises, and the interest rate falls.
The government imposes a maximum price on apartments that is below the equilibrium price. You accurately predict that
A. renters will find that landlords start offering to furnish the apartments. B. the law will have no economic impact. C. the law will create a surplus of apartments. D. landlords are less likely to do routine maintenance work in the apartments.