University Of Louisiana At Lafayetteecon 528: Managerial Economicschapter 4 Study Guide Graded A+

The price of a factor of production that is in fixed supply is called A) economic rent. B) economic profit. C) a compensating differential. D) opportunity cost. {Ans: A) economic rent.}The term "derived demand" refers to A) the demand for financial products called derivatives. B) the demand for a factor of production that is derived from the demand for the good the factor produces. C) a firm's estimated demand curve derived from sales data. D) a demand curve that derives from the availability of resources. {Ans: B) the demand for a factor of production that is derived from the demand for the good the factor produces.}Would you expect economies of scope to occur in the following situation; Producing two goods that are complementary to each for the buyer such as coffee and sugar. Select one: a. No b. I do not know c. Yes d. Cannot be determined based on the provided information {Ans: a. No}Which of the following is not a reason why firms experience economies of scale? Select one: a. Larger firms may be able to purchase inputs at lower costs than smaller competitors. b. As output increases, the managers can begin to have difficulty