Microeconomics

Which of the following statements best describes a production function

Which of the following statements best describes a production function? A) the maximum profit generated from given levels of inputs B) the maximum level of output generated from given levels of inputs C) all levels of output that can be generated from given levels of inputs D) all levels of inputs that could produce a […]

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Date: September 9th, 2020

Explain why labor might not always be a variable input. What will be

Explain why labor might not always be a variable input. What will be an ideal response?   ANSWER In the real world, units of labor are not identical. Many firms employ highly specialized units of labor. Their supply might be very inelastic so that the firm cannot easily increase the amount of this type of […]

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Date: September 9th, 2020

Technological efficiency is A) a necessary and sufficient condition f

Technological efficiency is A) a necessary and sufficient condition for profit maximization. B) a sufficient but not necessary condition for profit maximization. C) a necessary but not sufficient condition for profit maximization. D) a theoretical construct with little connection to the real world.   ANSWER C  

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Date: September 9th, 2020