Production through the firm is often more efficient than market exchange when
a. production requires many transactions among many resource owners
b. production requires few transactions between two resource owners
c. the cost of transacting business through market relations is less than the cost of undertaking the same activity within the firm
d. inputs are easily identified, measured, priced, and hired
e. the costs of determining inputs and negotiating contracts are low
A
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Economic theory and experience since 1973 indicate that, under floating exchange rates, a country's fiscal and monetary policies in the short-run and the long-run can
A) have both domestic and foreign economic impact. B) have domestic or foreign economic impact, but not both. C) have domestic but not foreign economic impact. D) have foreign but not domestic economic impact. E) have neither domestic nor foreign economic impact.
The marginal cost of labor for a perfectly competitive firm is given by:
a. the change in total revenue that results from employing an additional worker. b. the market wage rate. c. its marginal revenue product curve. d. the demand curve for labor. e. the marginal product of labor.