Consider the following production table: Labour Capital Output (i) 1,000 1,000 10,000 (ii) 2,002 2,000 20,010 Assuming that the production function displays constant returns to scale, what is the marginal product of labour when labour and capital are both equal to 1,000?
A. 1
B. 5
C. 10
D. 20
Ans: B. 5
You might also like to view...
If you invest $500 today, and the value one year from today is $1000, then the annual interest rate must be
A) 10%. B) 50%. C) 100%. D) 200%.
Some argue the best response to monopolies is no response at all because:
A. the creation of regulation may be too difficult. B. political mishandling may make the situation even worse. C. the regulation of monopolies may not be able to be managed effectively. D. All of these statements are true.
Consumers increased consumption by a relatively small amount in 2008 and 2009 because they believed the tax cuts were temporary
a. True b. False Indicate whether the statement is true or false
Suppose Bill receives a consumer surplus of $3 on his purchase of a pizza, for which he paid $9. The price Bill was willing and able to pay is
a. $15 b. $12 c. $9 d. $6