A Firm Produces Ping-Pong Balls Using Two Inputs

question 75

Multiple Choice

A firm produces Ping-Pong balls using two inputs.When input prices are ($15, $7) the firm uses the input bundle (17, 71) .When the input prices are ($12, $24) the firm uses the bundle (77, 4) .The amount of output is the same in both cases.Is this behavior consistent with WACM?

• A)Yes.
• B)No.
• C)It depends on the level of the fixed costs.
• D)We have to know the price of the output before we can test WACM.
• E)It depends on the ratio of variable to fixed costs.

---

Definitions:

Target Population

The entire group of individuals or objects to which researchers intend to generalize the results of a study.

Target Population

The total group of individuals or entities to which researchers intend to generalize the results of a study or survey.

Sampled Population

The subset of a larger population from which data is actually obtained for the purpose of statistical analysis.

Inferences

The process of drawing conclusions about a population's parameters based on a sample's statistics.