Which of the following statements is not always correct? In two-input production models, constant returns to scale indicate horizontal marginal cost curves. If labour and capital are perfect complements in production, short run supply curves involve a vertical segment. When output price increases, the long run increase in labour input use will be more than the short run increase in labour input use. If a monopolist has zero marginal and fixed costs and faces a market demand curve with constant price elasticity -1, then any quantity is profit maximising
Which of the following statements is not always correct? In two-input production models, constant returns to scale indicate horizontal marginal cost curves. If labour and capital are perfect complements in production, short run supply curves involve a vertical segment. When output price increases, the long run increase in labour input use will be more than the short run increase in labour input use. If a monopolist has zero marginal and fixed costs and faces a market demand curve with constant price elasticity -1, then any quantity is profit maximising
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Which of the following statements is not always correct?
In two-input production models, constant returns to scale indicate horizontal
marginal cost curves.
If labour and capital are perfect complements in production, short run supply
curves involve a vertical segment.
When output price increases, the long run increase in labour input use will be
more than the short run increase in labour input use.
If a monopolist has zero marginal and fixed costs and faces a market demand
curve with constant price elasticity -1, then any quantity is profit maximising](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9e8aa205-32aa-4f07-9b5c-13bb56a777db%2Fc9f51a3d-463c-4565-96bf-bb84fafce0a5%2Fdbm5995_processed.png&w=3840&q=75)
Transcribed Image Text:Which of the following statements is not always correct?
In two-input production models, constant returns to scale indicate horizontal
marginal cost curves.
If labour and capital are perfect complements in production, short run supply
curves involve a vertical segment.
When output price increases, the long run increase in labour input use will be
more than the short run increase in labour input use.
If a monopolist has zero marginal and fixed costs and faces a market demand
curve with constant price elasticity -1, then any quantity is profit maximising
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