Given the Leontief production function Q = min{5.5K, 6.7L}, how much output is produced when K = 40 and L = 35?
A. 268
B. 192.5
C. 234.5
D. 220
Answer: D
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In the above figure, the average variable cost curve is curve
A) A. B) B. C) C. D) D.
The price elasticity of supply
A) is the slope of the supply curve. B) is the percentage change in quantity supplied divided by the percentage change in price. C) is always negative. D) does not vary between the long and the short run.
Moving along which curve does the money wage rate and the price level change in the same proportions?
A) the AD curve B) the SAS curve C) the LAS curve D) None of the above because there is no curve along which both the money wage rate and the price level change in the same proportions.
Implicit costs are:
a. the opportunity costs of using resources owned by the entrepreneur in his/her own business. b. payments the business owner must make on borrowed funds. c. costs which vary as the level of output varies. d. those payments the business owner makes in cash. e. the payments the business owner makes for public relations, such as donations to charity.