What can be understood through the production function?
a. the monetary cost of inputs in relation to the sale price of outputs
b. how many inputs are needed to produce a certain number of outputs
c. the rate of change in output per added input compared with the change in cost
d. the intrinsic value of operating the firm versus the firm’s monetary profits
b. how many inputs are needed to produce a certain number of outputs
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Jessica paid $6,200 for a bond with a face value of $6,000. She will be paid $350 annually as long as she holds on to the bond, until the bond's maturity date. The yield on the bond is
A. 5.6 percent. B. 5.8 percent. C. 15.6 percent. D. 2.0 percent.
In the long run, a perfectly competitive firm earns no accounting profits.
Answer the following statement true (T) or false (F)
If a firm triples all of its inputs and its output doubles, it is said to be experiencing
a. diminishing marginal returns b. increasing marginal returns c. diseconomies of scale d. economies of scale e. constant average costs
If the quantity of a good demanded by a typical consumer increases in response to the growth in purchases of other consumers,
A. a negative network externality is present. B. a network externality is absent. C. a network externality can be positive or negative D. a positive network externality is present.