If the isoquants are straight lines or L-shaped, then a cost-minimizing firm will
A) not be able to minimize costs.
B) find the lowest isocost line touching the relevant isoquant.
C) find the highest isocost line touching the relevant isoquant.
D) choose not to produce any output.
B
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Mrs. Lovejoy decides to invest in companies which she believes can produce their goods at the lowest possible cost. Mrs. Lovejoy is investing in companies that are
A) always going to be profitable. B) productively efficient. C) both productively and allocatively efficient. D) allocatively efficient.
Which of the following is a characteristic of entrepreneurship?
a. the ability to navigate bodies of water b. it is produced using physical capital c. it is used up quickly in the production process d. it is a pre-existing resource like land e. it is associated with risk taking and innovation