Suppose the production function faced by the firm is Q = A1/3 B1/3.If the firm increases the use of both inputs by 1 percent, output will increase by
A. 2 percent.
B. 0 percent.
C. more than 10 percent.
D. less than 1 percent.
Answer: B
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Farmer Brown sells her wheat in a perfectly competitive market. Suppose the current market price of wheat is $2.50 per bushel.
A. Farmer Brown can sell as much wheat as she likes at $2.50 per bushel. B. Farmer Brown can charge any price for her wheat, but will maximize profit if she sells for less than $2.50. C. Farmer Brown should charge more than $2.50. D. Farmer Brown can charge more than $2.50 and still sell some wheat.
Since rent control ________ the total surplus of the market, the policy generates a ________.
A. decreases; producer surplus B. increases; producer surplus C. decreases; deadweight loss D. increases; deadweight loss
In the above figure, what is the profit-maximizing price and output?
A. $10, 17 B. $11, 16 C. $9, 14 D. $13, 14
A resource
A. only includes physical things. B. must come from the earth. C. is anything that we consume directly or use to make things we will ultimately consume. D. A) and C)