A firm uses two inputs, A and B. At its optimal choice of input proportions,
A. MRP of A = MRP of B.
B. MRPA/PA= MRPB/PB.
C. MPP of A = MPP of B.
D. All of the responses are correct.
Answer: B
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A) 0.80. B) 1.25. C) 3.25. D) 5.00. E) 10.0.
Some years ago New York City imposed rent controls in an effort to provide housing at "fair" prices for as many people as possible. The result was a serious shortage of housing and deterioration of existing rental properties. How would an economist have described the result in terms of economic efficiency?
In 1963, the government first adopted an official definition of poverty: families with incomes below $3,000
a. True b. False Indicate whether the statement is true or false
If a competitive firm is in short-run equilibrium, then:
A. marginal revenue is equal to marginal cost. B. price is greater than marginal cost. C. price is equal to average variable cost. D. price is greater than marginal revenue.