Suppose the economy's production function is Y = AK0.3N0.7. If K = 2000, N = 100, and A = 1, then Y = 246. If K rises by 10%, and A and N are unchanged, by how much does Y increase?
A) 30%
B) 10%
C) 6%
D) 3%
D
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Marginal revenue for a monopolist is computed as
a. average revenue divided by quantity sold. b. average revenue times quantity divided by price. c. total revenue divided by quantity sold. d. change in total revenue per one unit increase in quantity sold.
In the game shown below, firms 1 and 2 must independently decide whether to charge high or low prices.Firm OneFirm Two??High PriceLow Price?High Price(10,10)(5,-5)?Low Price(5,-5)(0,0)Suppose the game is infinitely repeated. Then the "best" the firms could do in a Nash equilibrium is to earn ________ per period.
A. (5, -5) B. (-5, 5) C. (10, 10) D. (0, 0)
Economies of scale are indicated by:
A. the rising segment of the average variable cost curve. B. the declining segment of the long-run average total cost curve. C. the difference between total revenue and total cost. D. a rising marginal cost curve.
Which of the following is a rare occurrence in case of poor performance by a company?
A. Firing the CEO B. Firing the lower-level management C. Firing the middle management D. Firing a few managers from the senior management