The primary disadvantage of engineering methods for measuring cost functions is that they deal with the managerial and entrepreneurial aspects of the production process or plant

Which of the following would explain why Josh's Limo Service might increase its demand for limo drivers?

A) an increase in demand for limo rides, resulting in a rise in the price of a limo ride B) a decrease in the demand for limo rides C) a fall in the price of a taxi ride D) a rise in the wage paid to limo drivers

Marginal productivity analysis shows that a drop in the price of the product will cause input use to

A. increase. B. decrease. C. stay the same. D. The information is insufficient to provide an answer.