A Firm Produces One Output with One Input and Has

question 22

True/False

A firm produces one output with one input and has decreasing returns to scale.The price that it pays per unit of input and the price it gets per unit of output are independent of the amount that this firm buys or sells.If the government taxes its net profits at some percentage rate and subsidizes its inputs at the same percentage rate, the firm's profit-maximizing output will not change.

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Definitions:

Equity

The concept of fairness or justice within the economy that deals with the distribution of wealth and resources.

Trade

The exchange of goods, services, or both within and between countries.

Specialize

To focus on a particular area of production or work, allowing for increased efficiency and expertise in that area.

Scarcity of Resources

The fundamental economic problem of having seemingly unlimited human wants in a world with limited resources.