In the one-input model, the cost curve is the inverse of the production frontier if and only if the input price is 1.
Answer the following statement true (T) or false (F)
True
Rationale: The production frontier has the input on the horizontal axis and the output on the vertical. The cost curve has output on the horizontal and dollars on the vertical. If each input unit costs $1, then the cost curve is simply the inverse of the production frontier. Otherwise, it is the inverse multiplied by the price of the input.
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a. an inferior good. b. a luxury good. c. a necessity. d. inexpensive, relative to other goods.
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Indicate whether the statement is true or false
If the demand for school ball caps is inelastic, an increase in price will result in:
A. a decrease in profits. B. an increase in total revenue. C. a decrease in total revenue. D. an increase in the quantity demanded.