Profit functions are homogeneous of degree:
a. zero in input and output prices.
b. zero in input prices.
c. one in input and output prices.
d. one in input prices.
c
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At full employment there still exists some unemployment because
A) some portion of our population will always be too lazy to work. B) there are always people too old or young to be in the labor force. C) the U.S. economy is constantly creating and destroying jobs. D) it is unnatural to have all people work 40 hours per week. E) real GDP can never exceed potential GDP.
A shift in the demand curve to the left, all other things unchanged:
A) will cause the supply curve to shift to the left, too. B) will cause a movement upward along the supply curve and a higher equilibrium price. C) will cause a movement downward along the supply curve and a lower equilibrium quantity. D) will result in a lower equilibrium price and greater equilibrium quantity.