Concerning the maximization of output subject to a cost constraint, which of the following statements (if any) are true?
a. At the optimal input combination, the slope of the isoquant must equal the slope of the isocost line.
b. The optimal solution occurs at the boundary of the feasible region of input combinations.
c. The optimal solution occurs at the point where the isoquant is tangent to the isocost lines.
d. all of the above
e. none of the above
d
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The Latin American region has more economic equality than the HPAE because nations are more democratic
Indicate whether the statement is true or false
Increases in the price of farm labor during the post-bellum period led to
a. an increase in farmers' demand for capital equipment. b. a decrease in farmers' demand for land. c. a decrease in the demand for food. d. an increase in the demand for fertilizer.
If the United States has an absolute advantage in producing computer components, it should export them worldwide
a. True b. False
A competitive market is in long-run equilibrium. If demand decreases, we can be certain that price will
a. fall in the short run. All firms will shut down, and some of them will exit the industry. Price will then rise to reach the new long-run equilibrium. b. fall in the short run. No firms will shut down, but some of them will exit the industry. Price will then rise to reach the new long-run equilibrium. c. fall in the short run. All, some, or no firms will shut down, and some of them will exit the industry. Price will then rise to reach the new long-run equilibrium. d. not fall in the short run because firms will exit to maintain the price.