Exam 13: Production Decisions in the Short and Long Run

If a firm's labor input response to a decrease in the wage differs between the short and the long run,we know that more workers will be hired after the initial short run adjustment.

(True/False)

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Question 21

If the production technology has increasing returns to scale,short run marginal cost curves must be downward sloping.

(True/False)

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Question 22

(Long run)average cost curves are U-shaped when the production technology has increasing returns to scale and the firm faces recurring fixed costs.

(True/False)

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Question 23

The greater the degree of substitutability between capital and labor,the greater will be the downward shift in the cost curve when wage falls.

(True/False)

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Question 24

Showing 21 - 24 of 24

If a firm's labor input response to a decrease in the wage differs between the short and the long run,we know that more workers will be hired after the initial short run adjustment.

If the production technology has increasing returns to scale,short run marginal cost curves must be downward sloping.

(Long run)average cost curves are U-shaped when the production technology has increasing returns to scale and the firm faces recurring fixed costs.

The greater the degree of substitutability between capital and labor,the greater will be the downward shift in the cost curve when wage falls.

Introduction

A Consumers Economic Circumstances

Economic Circumstances in Labor and Financial Markets

Tastes and Indifference Curves

Different Types of Tastes

Doing the Best We Can

Income and Substitution Effects in Consumer Goods Markets

Wealth and Substitution Effects in Labor and Capital Markets

Demand for Goods and Supply of Labor and Capital

Consumer Surplus and Deadweight Loss

One Input and One Output: a Short-Run Producer Model

Production With Multiple Inputs

Competitive Market Equilibrium

The Invisible Hand and the First Welfare Theorem

General Equilibrium

Choice and Markets in the Presence of Risk

Elasticities, Price-Distorting Policies, and Non-Price Rationing

Distortionary Taxes and Subsidies

Prices and Distortions Across Markets

Externalities in Competitive Markets

Asymmetric Information in Competitive Markets

Monopoly

Strategic Thinking and Game Theory

Oligopoly

Product Differentiation and Innovation in Markets

Public Goods

Governments and Politics

What Is Good Challenges From Psychology and Philosophy

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