Heterogeneous inputs in a perfectly competitive market will cause the industry to face ________ costs because as the firm produces a larger quantity, it is forced to use ________ productive inputs.
A. increasing; less
B. decreasing; less
C. increasing; more
D. decreasing; more
Answer: A
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Capital is
A) liquidity. B) interest. C) produced goods that can be used to produce future goods. D) non-existent in a socialist economy. E) all of the above.
A firm's marginal cost is defined as
a. the ratio of total cost to total output. b. the ratio of total output to total cost. c. the additional cost of producing one more unit of output. d. the reciprocal of total average cost.
A firm with two plants, A and B, has the following estimated demand and marginal cost functions:Qd = 120 - 10PMCA = 4 + (1 / 5)QAMCB = 6 + (1 / 10)QBHow should the firm allocate total output between the two plants in order to maximize profit?
A. produce 20 units in plant A, 20 units in plant B B. produce 5 units in plant A, 10 units in plant B C. produce 15 units in plant A, 10 units in plant B D. produce 20 units in plant A, 25 units in plant B E. none of the above
A good that is not rival and not excludable is a ______ good.
a. private b. public c. common d. club