Consider an output beyond the minimum point of a firm's short run average total cost curve. At this level of output the firm can use its ________ input at a lower average cost but only by using its ________ input at a higher average cost.
A. variable capital; fixed labor
B. fixed capital; variable labor
C. variable labor; fixed capital
D. fixed labor; variable capital
Answer: B
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For the use of the employee’s participation in production, an employee receives
a. wages. b. rent. c. interest. d. profit.
Which of the following is NOT a characteristic of the demand curve faced by a firm in a monopolistically competitive market?
A) The demand curve is downward sloping. B) The slope of the demand curve is negative. C) The firm will produce where the demand curve is inelastic. D) The firm will produce where the demand curve is elastic.
A monopolist maximizes profit by producing an output level where marginal cost equals price
a. True b. False Indicate whether the statement is true or false
The greater the elasticity of demand for a final product, we find ________ the demand for the factor inputs
A) the greater will be B) the lower will be C) that it will not impact D) The answer cannot be determined.