Using a Cobb-Douglas production function, Y/N = (K/N)b, the marginal product of capital is
A) b(K/N)b-1.
B) b(K/N).
C) (K/N)b-1.
D) (K/Y)b.
A
You might also like to view...
Refer to the table below. If the senior manager learns that either a Fair or Poor market will exist when the drug is introduced to the market, which drug should the senior manager pursue?
The senior manager of Rx Pharmaceuticals needs to decide which of three drugs the company should consider developing. The estimated profit for each of the drugs differs depending on the market conditions when the respective drugs are introduced to the market. The above table summarizes the estimated profit for each drug under each of the three market conditions; Good, Fair, and Poor.
A) Drug A
B) Drug B
C) Drug C
D) none of the drugs
The correlation between X and Y
A) cannot be negative since variances are always positive. B) is the covariance squared. C) can be calculated by dividing the covariance between X and Y by the product of the two standard deviations. D) is given by corr(X, Y) = .
If a consumer is maximizing his/her utility for a given income, the:
a. marginal utility for every good purchased would be the same. b. marginal utility per dollar spent for all goods would be the same. c. marginal utility per dollar for all goods would be at a maximum. d. total expenditure on each good would be the same. e. number of units of each good consumed would be the same.
Explain what is meant by predatory pricing, and the inherent difficulties involved with predatory pricing from a firm's point of view.
What will be an ideal response?