If a firm uses labor to produce output, the firm's production function depicts the relationship between
a. the number of workers and the quantity of output.
b. marginal product and marginal cost.
c. the maximum quantity that the firm can produce as it adds more capital to a fixed quantity of labor.
d. fixed inputs and variable inputs in the short run.
a
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The basis for trade is comparative advantage, not absolute advantage
Indicate whether the statement is true or false
During its run on Broadway, the play The Producers regularly sold out all available tickets at the St. James Theater. The theater could have raised ticket prices from $75 to $125 and still sold all available tickets but chose not to do so
The best explanation for this decision is A) theater owners do not want to raise their prices on weekends, when demand is high, and then have to lower prices during the week, when demand is lower. B) firms sometimes give up profits in the short run to keep their customers happy and increase their profits in the long run. C) theater owners are unaware of the elasticity of demand for Broadway shows. D) theater owners are not motivated to maximize their profits.