In the one-input model, a convex producer choice set implies an upward sloping marginal cost curve.
Answer the following statement true (T) or false (F)
True
Rationale: A convex producer choice set implies diminishing marginal product throughout -- which means it is getting harder and harder to produce. Thus, marginal costs are increasing.
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According to this Application, if a bank does NOT pass the test, the Fed can
A) make the bank raise additional capital from the financial markets. B) prevent the bank from paying out dividends to its shareholders. C) force the bank to close. D) Both A and B are correct.
Implicit costs are costs that:
A. represent forgone opportunities. B. do not depend on the quantity of output produced. C. require a firm to spend money. D. depend on the quantity of output produced.
Which theory states that education is correlated with natural ability?
Joe works in a factory producing chemicals used in paint manufacturing. If he is concerned about the effects of the chemicals that he works with on his health, he should contact which regulatory agency?
A. Securities and Exchange Commission (SEC) B. Environmental Protection Agency (EPA) C. Food and Drug Administration (FDA) D. Occupational Safety and Health Administration (OSHA)