The term "bottleneck" refers to
a. when increasing variable inputs must share a fixed amount of complementary input.
b. "fixity" of some factor
c. None of the above
d. Both a and b
d
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Doggy Treats is selling dog treats in a purely competitive market. Its output is 800 treats, which it sells for $10 a treat. At the 800-treat level of output, the marginal cost is $11, the average variable cost is $9.00, and the average variable cost is
$8.00. Should the firm increase output, decrease output, or not produce? Why? How should the firm determine that optimal level of output? What will be an ideal response?
Suppose all people have the same age-earnings profile and the percent of the population in each age category is the same. The distribution of income at any point in time will be
A) equal because all have the same profile. B) equal because incomes and wealth levels must then be the same. C) unequal because other sources of income will differ. D) unequal because incomes differ by age.