In the above table, if the price of labor is $10 per hour and the price of capital is $20 per unit, which method of producing 50 space crafts is economically efficient?
A) Technique W
B) Technique X
C) Technique Y
D) Technique Z
C
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In a decision tree, the difference between a decision node and a terminal node is that
A) at a decision node all participants make the same decision, while at a terminal node different players may make different decisions. B) at a decision node a decision must be made, while a terminal node shows the payoff. C) at a decision node a decision must be made, while at a terminal node the final decision must be made. D) at a decision node all participants are free to make individual decisions but at a terminal node they must agree on a collective decision.
If Fred's marginal utility of pizza equals 10 and his marginal utility of salad equals 2, then we know that
A) his indifference curves are convex. B) his indifference curves are L-shaped. C) his indifference curves are linear. D) his indifference curves are downward sloping.
The opportunity cost of an option
a. measures the undesirable aspects of the option. b. includes only the monetary cost of the option. c. is the highest-valued alternative that must be given up as the result of choosing the option. d. is objective, and it will be the same for all individuals.
Use the figure below, which shows a linear demand curve and the associated total revenue curve, to answer the question.
The maximum possible total revenue is $________.
A. 11,000 B. 10,500 C. 11,500 D. 12,500 E. 12,000