Refer to the diagram. The production of Q 1 units of output at an average cost of a:
A. is not possible, given present technology and resource prices.
B. can be achieved if the firm would hire the optimal mix of resources.
C. would entail X-inefficiency.
D. can be realized if the last dollar spent on each input were equal to its marginal product.
A. is not possible, given present technology and resource prices.
You might also like to view...
The teal book is the Fed research document containing
A) the forecast of national economic variables for the next three years. B) forecasts of the money aggregates conditional on different monetary policy stances. C) information on the state of the economy in each Federal Reserve district. D) both A and B. E) A, B and C.
The law of increasing additional cost exists because
A) resources are not perfectly adaptable to both production processes. B) the demand for the product increases. C) the cost of resources of the products increase. D) the cost of resources of the products decrease.
To earn profits, the market maker must
a. bid high, ask low b. bid low, ask high c. equalize the bid and ask price d. not create the market
How do balance of trade, balance on current account, and balance of payments differ?
What will be an ideal response?