Which of the following is a common mistake managers make?
A. Maximizing the value of the firm instead of maximizing the firm's profits.
B. Increasing the rate of production in order to reduce unit costs of production.
C. Treating implicit opportunity costs as part of the total costs of using resources.
D. Using marginal analysis to make output decisions.
E. all of the above.
Answer: B
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The level of aggregate supply in the long run is not affected by
A) changes in technology. B) changes in the price level. C) changes in the capital stock. D) changes in the number of workers.
The difference in price between hardback books and paperbacks is primarily explained by differences in production costs.
Answer the following statement true (T) or false (F)
An industry that realizes such large economies of scale in producing its product that single-firm production of that good or service is most efficient is called a(n) ________ monopoly.
A. patent B. fixed cost C. natural D. economies of scale
How can a combination of goods be unattainable?
What will be an ideal response?