Which of the following statements is FALSE?
A) Included in the firm's short-run production function are both fixed and variable inputs.
B) An efficient firm can obtain more output than the production function shows.
C) The production function shows the technical relationship between a firm's inputs and outputs.
D) The production function presents the technically efficient methods of combining inputs to produce output.
Answer: B
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A firm produces output according to the production function, q = L4/3K1/2 and faces input prices equal to w = $20 and r = $80. What is the minimum cost of producing 1140 units of output?
A) Cost = $780. B) Cost = $694 C) Cost = $2,071. D) Not enough information is given to answer this problem.
The existence of differences between the average earnings of men and women: a. proves the existence of discrimination
b. may be partially due to factors other than wage discrimination. c. proves that men on average invest more in human capital than do women. d. indicates that men are on average smarter than women are.
The simple model of competition among political parties long used by political scientists tends to lead to the practical solution of selecting the
A) optimal tariff. B) prohibitive tariff. C) zero (free-trade) tariff. D) the tariff rate favored by the median voter. E) the tariff rate supported by exporters.
When profits and costs occur in the future, the ________ the profit occurs and the ________ the cost occurs, the ________ likely the net present value will be ________.
A) later; sooner; more; positive B) sooner; later; more; positive C) sooner; later; less; positive D) sooner; later; more; negative