Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN: 9781305506893
Author: James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher: Cengage Learning
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Chapter 8, Problem 10CQ
To determine
The role of profit in an economy.
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Microeconomics: Private and Public Choice (MindTap Course List)
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- The idea that the mission of business is to produce goods and services at a profit, thus maximizing its contribution to society is associated with Noel Biderman O Adam Smith. Milton Friedman. Jack Ma. O Archie Carroll.arrow_forwardWhich of the following best describes an entrepreneur?a. A person who works as an office clerk at a major corporationb. A person who combines the factors of production to produce innovative productsc. A special type of capitald. Wealthy individuals who provide savings that stimulates the economyarrow_forwardusing classical production function explain the stages of production of a firm and advise on the best stage for a firm to operate.illustrate with relevant diagramsarrow_forward
- Give the three reasons that explain why the division of labor increases an economy’s level of production.arrow_forwardDiscuss the concept of production theory. Relate it to goals of minimizing the loss and maximizing profitabilityarrow_forwardWhat is meant by technological advance, as broadly defined? How does technological advance enter into the definition of the very long run? Which of the following are examples of technological advance, and which are not: an improved production process; entry of a firm into a profitable purely competitive industry; the imitation of a new production process by another firm; an increase in a firm’s advertising expenditures?arrow_forward
- With appropriate illustrations fully distinguish between the following: i. PRODUCTION FUNCTION and PRODUCTIVITY ii. AVERAGE PRODUCTIVITY and MARGINAL PRODUCTIVITY iii. TECHNICAL efficiency and ECONOMIC efficiency iv. DIMINISHING RETURNS to a factor and DECREASING RETURNS to scalearrow_forwardWith appropriate illustrations fully distinguish between the following: i.PRODUCTION FUNCTION and PRODUCTIVITY; ii.AVERAGE PRODUCTIVITY and MARGINAL PRODUCTIVITY iii.TECHNICAL efficiency and ECONOMIC efficiency iv.DIMINISHING RETURNS to a factor and DECREASING RETURNS to scalearrow_forwardDiscus demand and supply factors of production in theory of the firm and provide examplesarrow_forward
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