Suppose the current level of output is 5000. If the elasticities of output with respect to capital and labor are 0.3 and 0.7,
respectively, a 10% increase in capital combined with a 5% increase in labor and a 5% increase in productivity would increase the current level of output to
A) 5015.
B) 5325.
C) 5575.
D) 6000.
C
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Being a monopolist in the market
A. guarantees a positive short-run profit. B. guarantees a positive long-run profit. C. does not contradict with the rule that profit is maximized where MR = MC. D. All of these responses are correct.
Suppose player 1 potentially moves twice in a sequential game, each time choosing from one of two possible actions -- "Left" or "Right". His first move is at the beginning of the game. He gets to move a second time if he moved "Left" the first time and after observing one of two possible actions by player 2 ("Up" or "Down"). But if he moves "Right" in the first stage, he gets no further moves and the game ends after player 2 chooses one of two actions ("Up" or "Down"). Draw the game tree and list all possible strategies for players 1 and 2.
What will be an ideal response?
The Securities and Exchange Commission (SEC) oversees the regulation of the securities market.
Answer the following statement true (T) or false (F)
The index of intra-industry trade is calculated as:
a. the minimum of imports and exports divided by the average of imports and exports. b. the maximum of imports and exports divided by the sum of imports and exports. c. imports divided by exports. d. imports plus exports divided by the average of imports and exports.