A firm's production function is the relationship between the factors of production and the resulting outputs of the production process
Indicate whether the statement is true or false
TRUE
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Refer to Table 4-7. Suppose that the quantity of labor demanded decreases by 80,000 at each wage level. What are the new free market equilibrium hourly wage and the new equilibrium quantity of labor?
A) W = $8.50; Q = 550,000 B) W = $9.50; Q = 590,000 C) W = $12.50; Q = 630,000 D) W = $9.50; Q = 570,000
Suppose TC = 10 + (0.1 ? q2). If p = 10, the firm's profit maximizing level of output is
A) 40. B) 50. C) 60. D) 0, since the firm will shut down.
Last year you purchased 20 shirts at $15 apiece, 30 CDs at $12 each, and 5 sweaters at $25 apiece. This year you buy 20 shirts at $20 apiece, 30 CDs at $12 apiece, and 5 sweaters at $20 a apiece. If last year's index was 100, this year's index is
A) 91.3. B) 102.0. C) 109.5. D) 9.5.
According to the graph shown, if Q2 units are being produced, this monopolist:
This graph shows the cost and revenue curves faced by a monopoly.
A. is earning negative profits.
B. should cut back production to increase profits.
C. is maximizing revenue.
D. is maximizing profits.