Suppose firms A and B each make T-shirts. Firm A's production function is q = L0.5K0.5. Firm B's production function is q = 1.2 ? L0.5K0.5
If the two firms each hire the same amounts of capital and labor, compare the two firms in terms of APL and MPL.
Firm B's APL and MPL will equal 1.2 times the APL and MPL of firm A.
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Which of the following is not an example of a final good or service (from the perspective of the national income accounts)?
A. A new string trimmer purchased by Green Grass Lawn Care Services, which employees will use to maintain customer's yards B. Seedlings and saplings purchased for resale by Wendy's Garden Center C. New lawn mowers sold to consumers by Cut-Rite Lawn Equipment & Supplies in their retail store D. Flowers and pots purchased by homeowner Joe Smith for his garden
Which of the following is the main cause of the persistent inflation that we have experienced in the United States?
A) supply-side inflationary factors B) demand-side inflationary factors C) a combination of supply- and demand-side inflationary factors D) supply-side secularity factors
At the equilibrium price, buyers have bought all they want to buy, but sellers have not sold all they want to sell
a. True b. False Indicate whether the statement is true or false
What is total revenue for a firm?
What will be an ideal response?