If the Marginal Cost of Producing Vanity License Plates Is

question 118

Multiple Choice

If the marginal cost of producing vanity license plates is virtually zero (by prison inmates with little else to do) , then states would maximize their profits on plate sales at the point on a linear demand curve where

• A)demand is inelastic.
• B)demand is elastic.
• C)demand is unit elastic.
• D)the demand curve crosses the horizontal axis.

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Definitions:

Production Function

A mathematical relationship that describes how inputs like labor and capital are transformed into output.

J/L Ratio

The ratio of job vacancies to labor, often used to describe the labor market's health or tightness.

Cartoonists' Labor

The process and artistic effort involved in producing comics and animation, showcasing unique storytelling and visual humor.

J/L Ratio

A ratio used in economic models to represent some aspect of the economy, though the exact interpretation can vary depending on the specific context (e.g., job-to-liquidity ratio, job-to-loss ratio); further context is needed for a precise definition.