This topic contains a solution. Click here to go to the answer

Author Question: Refer to the information in Scenario 8.1. If Fizzle and Sizzle sell the same output at the same ... (Read 68 times)

maychende

  • Hero Member
  • *****
  • Posts: 556
Refer to the information in Scenario 8.1. If Fizzle and Sizzle sell the same output at the same price and are otherwise identical, Fizzle's profit will be
 
  A) higher than Sizzle's by 500,000 yearly.
  B) higher than Sizzle's by just less than 500,000 yearly.
  C) zero in the long run, and Sizzle will be out of business.
  D) the same as Sizzle's, because Fizzle must be assigned an implicit cost of 500,000 yearly for economic rent.
  E) the same as Sizzle's, because Sizzle will move to a more advantageous location in order to compete.

Question 2

The marginal rate of technical substitution is equal to:
 
  A) the absolute value of the slope of an isoquant.
  B) the ratio of the marginal products of the inputs.
  C) the ratio of the prices of the inputs.
  D) all of the above
  E) A and B only



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

zhanghao

  • Sr. Member
  • ****
  • Posts: 316
Answer to Question 1

D

Answer to Question 2

E




maychende

  • Member
  • Posts: 556
Reply 2 on: Jul 1, 2018
Wow, this really help


mammy1697

  • Member
  • Posts: 341
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

Did you know?

Signs of depression include feeling sad most of the time for 2 weeks or longer; loss of interest in things normally enjoyed; lack of energy; sleep and appetite disturbances; weight changes; feelings of hopelessness, helplessness, or worthlessness; an inability to make decisions; and thoughts of death and suicide.

Did you know?

The first successful kidney transplant was performed in 1954 and occurred in Boston. A kidney from an identical twin was transplanted into his dying brother's body and was not rejected because it did not appear foreign to his body.

Did you know?

About 60% of newborn infants in the United States are jaundiced; that is, they look yellow. Kernicterus is a form of brain damage caused by excessive jaundice. When babies begin to be affected by excessive jaundice and begin to have brain damage, they become excessively lethargic.

Did you know?

Atropine was named after the Greek goddess Atropos, the oldest and ugliest of the three sisters known as the Fates, who controlled the destiny of men.

Did you know?

Approximately one in four people diagnosed with diabetes will develop foot problems. Of these, about one-third will require lower extremity amputation.

For a complete list of videos, visit our video library