Suppose a production function is q = K1/2L1/3 and in the short run capital (K) is fixed at 100 . If the wage is $10 and the rental rate on capital is $20, the fixed cost is
a. $2,000
b. $200
c. $20,000
d. $0
a
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The term "dirty float" is used to describe:
a. international agreements about fishing rights that were developed in the 1960s. b. the system of exchange rates, which relies primarily on market forces with limited government intervention. c. the inflation that followed price controls implemented by the Nixon administration. d. unsound monetary policy.
The AD curve shifts to the right with a __________ in government purchases (G) or a __________ in taxes
A) rise; rise B) rise; fall C) fall; rise D) fall; fall
The policy mix that the Clinton administration sought in early 1993 was a
A. smaller budget deficit and tighter monetary policy. B. smaller budget deficit and looser monetary policy. C. larger budget deficit and looser monetary policy. D. larger budget deficit and tighter monetary policy.
In periods when GDP fails to grow at its normal rate, the actual unemployment rate will be ________ than the natural rate of unemployment.
A. lower B. higher C. the same D. falling faster