A basic model of a business firm in economics assumes that its management cannot improve on the technology that transforms inputs like labor and energy into output. This assumption helps them to understand the choice of:
a. input levels that minimize cost.
b. output levels that minimize cost.
c. output levels that maximize profits.
d. input levels that maximize profits.
A
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An example of "cream skimming" is when:
a. a firm charges the same price to all consumers, even though costs for some are higher b. a firm offers a reduced price to the best-paying customers of their competitors c. a firm offers a reduction in price on a package sale of two items d. none of these
Critics of the World Trade Organization (WTO) say that liberalized world trade does all of the following except:
A. produce environmental degradation. B. allow producers to circumvent labor protections such as workplace safety, child labor restrictions, and collective bargaining rights. C. helps developing nations escape from poverty. D. promote the interests of multinational corporations.