Question

Mutiple Choice: A.) At any particular point in time, the output of the economy: A. is...

Mutiple Choice:

A.) At any particular point in time, the output of the economy: A. is fixed because the supplies of capital and labor and the technology are fixed. B. is fixed because the demand for goods and services is fixed. C. varies because the supplies of capital and labor vary. D. varies because the technology for turning capital and labor into goods and services varies.

B.) If a firm with a constant returns to scale production function pays all factors their marginal products, then: A. economic and accounting profits are both zero. B. economic profit is zero and accounting profit is positive. C. economic profit is positive and accounting profit is zero. D. economic and accounting profit are both positive.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer A) Option A is correct. At any particular point of time, the output of an economy is fixed the Supply of labour and capital and the technology is fixed. It means that output is directly dependent upon there input such as labour and capital . It is not related to the demand or Supply.

Answer B) Option B is correct. In case the firm has constant returns to scale than with all Factors of production it resulted in Economic profit is zero and accounting profit is positive. As economic profit is an extra profit earned but it is not possible in case of constant returns where it is not possible in case of Accounting profit.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Mutiple Choice: 1-3. A competitive firm hires labor until the marginal product of labor equals the:...
Mutiple Choice: 1-3. A competitive firm hires labor until the marginal product of labor equals the: A. real wage. B. rental price of capital. C. price of output. D. capital/labor ratio 2-3. According to the model developed in Chapter 3, when government spending increases but taxes are not raised, interest rates: A. increase. B. are unchanged. C. decrease. D. can vary. 3-3. . In a closed economy with a fixed total income, a reduction in taxes will cause consumption: A....
Suddenly there is an increase in the demand for Frisbees. The most likely result would be...
Suddenly there is an increase in the demand for Frisbees. The most likely result would be A firm will not produce where MR=MC when a. It is making an operating profit b. It is earning negative economic profits c. It is making an operating loss d. It is earning positive economic profit Households are a. Suppliers in the input market b. Demanders in the labor market c. Demanders in the input market d. Suppliers in the product markets The short...
1?Basic factors of production available to a society are * A. natural resources, labor and capital....
1?Basic factors of production available to a society are * A. natural resources, labor and capital. * B. natural resources, labor and money. * C. labor, money and environment. * D. natural resources, money and infrastructure. 2?Total cost is * A. the sum of total fixed cost and total variable cost. * B. increasing with output. * C. equal to total fixed cost when production level is zero. * D. all the above true. 3?Suppose a certain firm is able...
1. Long run average costs rise as output (q) increases Select one: a. Economy of Scale...
1. Long run average costs rise as output (q) increases Select one: a. Economy of Scale b. Decreasing Returns to Scale c. Increasing Returns to Scale d. Constant Returns to Scale e. Diseconomy of Scale 2. A production function where the MRTS is constant at all points. Isoquants are straight lines. Select one: a. Production Function b. Isoquant c. Perfect Substitutes Production Function d. Isocost Line e. Technology Function f. Fixed-Proportions Production Function 3. A production function with L-shaped isoquants...
"Efficiency" refers to a) producing output using the least amount of labor b) producing output using...
"Efficiency" refers to a) producing output using the least amount of labor b) producing output using the least amount of capital c) producing as far inside the production possibilities frontier as possible d) producing only one out of many possible commodities e) getting the maximum possible output from available resources 2) A normative economic statement a) is a hypothesis used to test economic theory b) is a statement of fact c) is a statement of what ought to be, not...
11.   A firm is making 0 economic profits. This means that: A.  it can cover variable costs...
11.   A firm is making 0 economic profits. This means that: A.  it can cover variable costs but not fixed costs B.  it has an opportunity cost equal to its accounting profits C.  it has explicit costs but no implicit costs D.  It has explicit and implicit costs equal to zero E.  it has revenue equal to its implicit costs 12.   A firm is making 0 economic profit. This means that: A.  firms want to enter the industry B.  firms want to exit the industry C.  firms want...
An economy with better technology is likely to: A) have lower levels of human capital. B)...
An economy with better technology is likely to: A) have lower levels of human capital. B) use more labor than capital. C) achieve higher productivity. D) have less capital stock. 184) An aggregate production function: A) shows the relationship between a country's GDP and its factors of production. B) shows various quantities of two goods that can be produced at a given cost. C) shows various combinations of labor and capital that can be used to produce a particular good....
[9] An opportunity cost: A) exists only for decisions involving expenditures of money. B) exists because...
[9] An opportunity cost: A) exists only for decisions involving expenditures of money. B) exists because there is only one way money and time can be spent. C) is equal to the value of what is given up to make a purchase or take an action. D) accompanies every decision made by individuals and businesses, but not by government because that reflects the wishes of society. [10] The opportunity cost of a purchase is: A) zero if the item is...
1.) Fill in the blank from the choices inside the parentheses: If a firm the profit...
1.) Fill in the blank from the choices inside the parentheses: If a firm the profit maximizing level of output results in total revenue less than total cost, describe the long run effect on the market. Existing firms in the market are earning (economic losses, 0 economic profits, or economic profits). This will result in (existing firms exiting, new firms entering, or existing firms shutting down). Due to the above, market supply will (increase, decrease, or remain unchanged). and equilibrium...
20] You would expect a society with a traditional economy to have most of its economic...
20] You would expect a society with a traditional economy to have most of its economic activity directed toward: A) agriculture. B) manufacturing. C) production of services. D) real estate management. [21] In a market economy, the willingness and ability of buyers to purchase goods and services helps to: A) set the prices of those goods and services. B) determine who gets the goods and services. C) determine what goods and services will be produced and in what quantities. D)...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT