Explain how firms that each produce as efficiently as they can may not be equally productive
What will be an ideal response?
Firm-specific characteristics may vary the level of productivity for firms even if all firms operate as efficiently as each possibly can.
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Which of the following does NOT increase labor productivity?
A) increases in aggregate hours B) physical capital growth C) human capital growth D) technological advances
Between August 2007 and July 2008, Brazil exported more than 3.5 billion pounds of coffee to the rest of the world. Suppose the Brazilian government subsidizes the export of coffee by $0.42 per pound
Which of the following would be an outcome of this subsidy? A) Brazilian producers experience an increase in producer surplus. B) Brazilian consumers experience an increase in consumer surplus. C) Producers from the rest of the world experience a gain in producer surplus. D) Brazilian coffee exports would decrease.