Assume your company produces good X using only two inputs, capital (K) and labor (L). Also, assume L is measured on the vertical axis and K on the horizontal one. If the prices of inputs are PK=$30 and PL=15, and your company is behaving efficiently, what is the slope of the isoquant at the current input mix?
A. 1/2
B. -1/2
C. 2
D. -2
Answer: D
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The demand curve in the figure above illustrates the demand for a product with a price elasticity of demand
A) equal to zero at all prices. B) equal to infinite at all prices. C) equal to one at all prices. D) that is different at all prices.
A multi-plant firm has three plants and, at its current production levels, the marginal cost of production at each of the three plants is $2.00. If the firm is perfectly competitive and the market price of its product is $5, which of the following is true?
A) The firm should exactly triple output in each of the plants to maximize profit. B) The firm is not producing the profit-maximizing total output. C) The firm is producing the profit-maximizing total output. D) The firm should increase output at each of the plants to maximize profit.
Government bonds of different terms have different interest rates.
Answer the following statement true (T) or false (F)
________ is a tax on a stock, while ________ is a tax on a flow.
A. A tax on your salary; a retail sales tax B. A local property tax; a tax on your salary C. A payroll tax; a local property tax D. A retail sales tax; a payroll tax