Author Question: A basic model of a business firm in economics assumes that its management cannot improve on the ... (Read 224 times)

stevenposner · **on:** Jun 30, 2018

A basic model of a business firm in economics assumes that its management cannot improve on the technology that transforms inputs like labor and energy into output. This assumption helps them to understand the choice of:
a. input levels that minimize cost.
b. output levels that minimize cost.
c. output levels that maximize profits.
d. input levels that maximize profits.

Question 2

In an indifference map, one would most likely see indifference curves that:
a. are positively sloped.
b. intersect at the origin.
c. cross at the equilibrium point.
d. are bowed inward toward the origin.
e. represent greater utility as they approach the origin.