When a particular firm is fully utilizing its capital, its output is given by Y = 10 × . The cost of labor is $1 per unit. To maximize profit, how many units of labor should this firm use?
A) 25
B) 5
C) 3.16
D) 100
E) 50
A
You might also like to view...
"Similar to imports, U.S. exports depend on the level of U.S. real GDP so that if real GDP increases, U.S. exports increase." Explain whether the previous sentence is correct or incorrect
What will be an ideal response?
The money supply curve is
a. upward sloping b. downward sloping c. vertical d. horizontal e. parallel to the money demand curve
Which of the following policies is a positive supply-side lever?
A. Increased government transfers. B. Infrastructure development. C. Cutting the discount rate. D. Increased government regulation of industry.
When equilibrium GDP is below potential GDP, jobs are
A. plentiful and unemployment is low. B. plentiful and unemployment is high. C. scarce and unemployment is high. D. scarce and unemployment is low.