Refer to the below table. If the firm's product sells for a constant $2 and the price of the resource is a constant $16, the firm will employ how many units of the resource?
A. 5
B. 4
C. 3
D. 2
A. 5
You might also like to view...
Recessions and expansions affect most strongly which type of unemployment?
A) frictional unemployment B) structural unemployment C) cyclical unemployment D) seasonal unemployment
"Because the price of a diamond is much greater than the price of a gallon of water, the consumer surplus from diamonds is greater than the consumer surplus from water." Is the previous analysis CORRECT? Explain your answer
What will be an ideal response?
Suppose that the current exchange rate between the dollar and peso is $1 equals 11 pesos. If the exchange rate changes to $1 equals 9 pesos, which of the following is TRUE?
A. The peso depreciates and U.S. imports from Mexico become cheaper. B. The dollar appreciates and U.S. exports become cheaper. C. The peso appreciates and U.S. imports from Mexico become cheaper. D. The dollar appreciates but the peso values of U.S. exports stay the same.
For constant returns to scale, a(n) ________ in a firm's scale of production leads to ________ average total cost.
A. increase; higher B. decrease; a change in C. decrease; no change in D. increase; lower