Which of the Following Is Not a Possible Source of Bias

question 14

Multiple Choice

Which of the following is not a possible source of bias for the Leontief paradox?

• A)Leontief only used a two-factor model
• B)Leontief did not consider factors such as natural resources
• C)Leontief only used physical capital in the measure of capital
• D)Leontief used Human Capital as an alternative to Physical capital

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Definitions:

Average Total Cost

The total cost of production divided by the number of units produced, indicating the cost per unit of output.

Profit-maximizing

A strategy or approach that aims to achieve the highest possible profit from business activities.

Marginal Revenue

The revenue increase from selling an additional good or service unit.

Competitive Price-searcher

A market condition where firms have some control over pricing because their products are differentiated, but they must still consider competitors' prices in their pricing strategy.