If MRS's are equal across all consumers, then the efficient product mix has been achieved
Indicate whether the statement is true or false
False. Consumption efficiency has been achieved for the given product mix, but the given product mix is efficient only if MRT equals the MRS for all pairs of goods.
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Even though the number of workers in manufacturing has increased in the post-war world (since 1947), the proportion of manufacturing workers in the total labor force has declined
Indicate whether the statement is true or false
When we calculate the marginal physical product of labor, we assume
a. all resources increase proportionately with the quantity of labor b. all other resources are held constant (are unchanging) c. output is fixed (unchanging) d. the wage rate is fixed (unchanging) e. the prices of all resources used in production are fixed (unchanging)
Product differentiation allows the firm to
a. raise price and lower quantity demanded b. raise price without suffering a substantial loss of sales c. shift the market demand curve to the left d. shift the market supply curve to the left e. decrease barriers to entry
The slope of a steep upward-sloping line will be a
a. small positive number. b. large positive number. c. small negative number. d. large negative number.