Learning by doing, which leads to lower costs in the long run, is often
A) increased when new machinery is brought into the production process.
B) a function of cumulative output, that is producing more of the good or service.
C) improved through better use of computers in the production process.
D) not very important to most firms.
B
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301-actions are more frequently used as a tool of trade policy, especially since the formation of the World Trade Organization
Indicate whether the statement is true or false
Sweet Husks is a perfectly competitive corn farm. Currently, the expected price of an ear of corn is $0.30 and, at its current production level, Sweet Husks has a marginal cost of $.40 per ear. Which of the following statements is true?
A) Because the expected profit from an additional ear of corn is $0.10, Sweet Husks should decrease production to maximize its expected profit. B) Because the expected profit from an additional ear of corn is -$0.10, Sweet Husks should decrease production to maximize its expected profit. C) Because the expected profit from an additional ear of corn is $0.70, Sweet Husks should increase production to maximize its expected profit. D) Because the expected profit from an additional ear of corn is $0.10, Sweet Husks should increase production to maximize its expected profit.