The profit maximizing combination of resources
A) usually involves more of each input hired than the cost minimizing combination of resources.
B) usually involves less of each input hired than the cost minimizing combination of resources.
C) usually involves hiring more of some resources and less of other resources than the cost minimizing combination of resources.
D) is also the cost minimizing combination of resources.
Answer: D
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From the 1960s through the 1990s military expenditures increased as a percentage of GDP and they were a major influence in the continued growth of government outlays
a. True b. False
If the multiplier is 10, the MPC is
A. 0. B. .1. C. .5. D. .9.
If a firm is maximizing profits in the short run at a level of output where Average total cost > Price > Average variable cost, then the firm is _________.
A) earning positive economic profits B) braking even (zero economic profits) C) realizing losses but minimizing losses by continuing to produce D) realizing losses and will minimize losses by shutting down
If you were going to expand a facility by adding 10% more seats, and the costs of providing ushers and other personnel to deal with the new seats was exactly the same (on a per seat basis) as the older portion of the facility, the new MC curve would look like the previous one, except that it would
A. just shift to the right. B. just shift up. C. no longer be a backward L but would be upward sloping once the old capacity was reached. D. just shift to the left.