Refer to the table at right. When the quantity of labor equals? 4, what does the average product? equal?
A. 216
B. 18
C. 72
D. 9
Answer: B. 18
You might also like to view...
Segregation can result from government policies, social pressures, and individual choices
Indicate whether the statement is true or false
Most firms produce where marginal revenue is equal to marginal cost, but firms in a monopolistically competitive industry instead choose output where average cost is equal to demand.
Answer the following statement true (T) or false (F)
Refer to the figure above. What is the social surplus if the market is in equilibrium?
A) $50 B) $75 C) $100 D) $150
Recall that the Cobb-Douglas Utility function U(X,Y) = XaY1-a has the unusual property that the demand for each good depends only on its own price
Therefore, a consumer will always allocate the same proportion of income to each good. Specifically, the demand for X is X* = aI/px where I is income and px is the price of X. a. What is the price elasticity of demand for X? b. What is the direction of the income effect on X of an increase in px?