The production function
A) gives the maximum amount of output for a given level of inputs.
B) gives the implicit costs for all inputs.
C) gives the amount of time necessary to reach the long run.
D) allows us to compute the difference between accounting and economic profits.
Answer: A) gives the maximum amount of output for a given level of inputs.
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Even though monopolistic competition results in inefficiency, it does have which of the following benefits for society?
A) Firms earn zero economic profit in the long run. B) Firms can earn an economic profit in the short run. C) Product variety benefits consumers. D) Marginal cost equals price in the long run. E) The premise of the question is incorrect because nothing in monopolistic competition justifies any economic inefficiency.
Compare the outcome in a market with a single-price monopoly to that in a perfectly competitive market
What will be an ideal response?
Use the following general linear supply function:Qs = 40 + 6P - 8PI + 10F where Qs is the quantity supplied of the good, P is the price of the good, PI is the price of an input, and F is the number of firms producing the good. Suppose PI = $40, F = 50, and the demand function is Qd = 700 - 6P , then if government sets a price of $50 what will be the result?
A. a shortage of 160 B. a surplus of 120 C. a surplus of 160 D. a shortage of 120
The current chair of the Federal Reserve System is
A. Tim Geithner. B. Hillary Clinton. C. Ben Bernanke. D. Alan Greenspan. E. Jerome Powell.