Homework Sourse25 A successful process innovation can be expected to lead
____ 25. A successful process innovation can be expected to lead to
a.
an upward shift of the MC and AC curves which will lower output and raise the price of the product.
b.
an upward shift of the MC and AC curves which will raise output and lower the price of the product.
c.
a downward shift of the MC and AC curves which will lower output and raise the price of the product.
d.
a downward shift of the MC and AC curves which will raise output and lower the price of the product.
e.
a downward shift of the MC and AC curves which will leave unchanged the output and price of the product.
____ 26. A firm producing a smoke externality is producing
a.
more than the socially optimal quantity of output.
b.
less than the socially optimal quantity of output.
c.
exactly the socially optimal quantity of output.
d.
There is insufficient information to answer.
____ 40. A $1,000 to be received at a future date
a.
is worth less than a $1,000 received today.
b.
is worth more than a $1,000 received today.
c.
has the same value as $1,000 received today.
d.
is worth less than $1,000 received yesterday.
| a. | an upward shift of the MC and AC curves which will lower output and raise the price of the product. |
| b. | an upward shift of the MC and AC curves which will raise output and lower the price of the product. |
| c. | a downward shift of the MC and AC curves which will lower output and raise the price of the product. |
| d. | a downward shift of the MC and AC curves which will raise output and lower the price of the product. |
| e. | a downward shift of the MC and AC curves which will leave unchanged the output and price of the product. |
Solution
25. A successful process innovation can be expected to lead to...
d.
a downward shift of the MC and AC curves which will raise output and lower the price of the product.
26. A firm producing a smoke externality is producing..
a. more than the socially optimal quantity of output.
40. A $1,000 to be received at a future date
a. is worth less than a $1,000 received today.
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| d. | a downward shift of the MC and AC curves which will raise output and lower the price of the product. |
