What is one reason perfectly competitive firms wish to be ever more efficient?
A) Individual firms are awarded by the tax code to be more efficient.
B) Individual firms can better control their costs than the price they can charge.
C) Individual firms can better control their costs than their output levels.
D) Individual firms don't need to be efficient; government policies do not reward efficiency.
B
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The primary assets of money market mutual funds are
A) stocks. B) bonds. C) money market instruments. D) deposits.
The steeper an isoquant is
A) the greater is the marginal product of labor relative to that of the marginal product of capital. B) the greater is the substitutability between capital and labor. C) the greater is the need to keep capital and labor in fixed proportions. D) the greater is the level of output.
Which of the following statements about the average total cost curve is false?
A. The marginal cost curve crosses the average total cost curve at the point at which average total cost is minimized. B. It is initially downward sloping because increases in quantity make the average fixed cost smaller. C. It eventually becomes upward sloping because the law of diminishing returns sets in. D. It is always downward sloping because the average fixed costs will always decrease as quantity increases.
Constant returns to scale refers to when:
A. an increase in the quantity of output decreases average total cost in the long run. B. an increase in the quantity of output increases average total cost in the long run. C. average total cost does not depend on the quantity of output in the long run. D. None of these is true.