Which furniture production process would have the highest production function?
a. furniture made by handsaw and hammer
b. furniture made with power equipment
c. furniture made by grade school-educated workers
d. furniture made in an automated furniture factory
d
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Suppose a price-taking firm uses a single input - labor - to produce an output x. The production technology has diminishing marginal product of labor throughout. a. On a graph with labor hours on the horizontal and output on the vertical axis, illustrate the production frontier for this firm. b. For a given wage rate w and output price p, illustrate three isoprofit curves corresponding to profit levels ?
What will be an ideal response?
The demand for a good increases when the price of a substitute ________ and also increases when the price of a complement ________
A) rises; rises B) rises; falls C) falls; rises D) falls; falls
The above figure shows the market for a particular good. If the market is controlled by a perfect-price-discriminating monopoly, compared to a monopoly who charges a single price, the change in consumer surplus is
A) A. B) A + B + C. C) A + B + C + D + E. D) zero.
According to the above figure, when the monopolist maximizes profits, its profits are equal to the area given by
A) AKMC. B) AKOD. C) BLPE. D) EPRF.