Market failure occurs when:
A.) Market prices signal producers to produce the optimal mix of output.
B.) The economy produces at a point on the production possibilities curve.
C.) Producers supply the goods that earn the greatest profit.
D.) An imperfection in the market mechanism prevents an optimal outcome.
D.) An imperfection in the market mechanism prevents an optimal outcome.
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Using the data in the above table, if the price of an hour of labor is $10 and the price of a unit of capital is $20, then the most economically efficient technique for producing 100 sweaters is
A) A. B) B. C) C. D) D.
Refer to Figure 13-3. Which of the points in the above graph are possible short-run equilibria?
A) A and D B) A and C C) A and B D) A, B, C, and D
The following are all the forms of debt finance
A) bond, bank, and official finance B) bond and bank finance C) bond, bank, and portfolio finance D) foreign direct and portfolio investment E) direct investment, stock, and dividends
Assume that a firm spends $500 on two inputs, labor (graphed on the horizontal axis) and capital (graphed on the vertical axis)
If the wage rate is $20 per hour and the rental cost of capital is $25 per hour, the slope of the isocost curve will be A) 500. B) 25/500. C) -4/5. D) 25/20 or 1.25.