Suppose the production of VCRs can be represented by the following production function: q = L0.4 K0.4. The firm currently produces units. If all inputs doubled, the new level of output will equal

When externalities exist, economic efficiency is achieved when marginal private benefit equals marginal private cost

a. True b. False Indicate whether the statement is true or false

A general and ongoing rise in the prices of goods and services in an economy is called inflation

a. True b. False Indicate whether the statement is true or false