Given an initial endowment of factor inputs,
A. there are many efficient output levels for the firms.
B. a production possibility curve can be determined without knowing the contract curve.
C. the midpoint on the production contract curve is the most equitable point.
D. there is only one efficient level of outputs.
Answer: A
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The store of value does not require that money hold its value of time in terms of its purchasing power
Indicate whether the statement is true or false
Which of the following is true at the point where diminishing returns set in?
a. Marginal product is at a minimum and marginal cost at a maximum. b. Both marginal product and marginal cost are at a minimum. c. Both marginal product and marginal cost are at a maximum. d. Marginal product is at a maximum and marginal cost at a minimum.
In a competitive market where the elasticity of the market demand curve is -1.5, the number of firms is 20, and an individual firm faces a residual demand curve with an elasticity of -68. What is the elasticity of the supply curve?
A) 0.5 B) 1.2 C) 2 D) Cannot be determined.
The principle that the cost of something is equal to what is sacrificed to get it is known as the
A. principle of opportunity cost. B. marginal principle. C. reality principle. D. principle of diminishing returns.