The price elasticity of demand for business travel tends to be greater than that of leisure travel.
Answer the following statement true (T) or false (F)
False
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A business incurs the following costs per unit: Labor $5/unit; Materials $3/unit and rent $5000/month. If the firm produces 1000 units a month, the total costs equals
a. $5,000 b. $8,000 c. $13,000 d. $3,000
In a country with a working-age population of 20 million, 13 million are employed, 1.5 million are unemployed, and 1 million of the employed are working part-time, half of whom wish to work full-time. The labour force participation rate is
A) 72.5 percent. B) 57.5 percent. C) 65 percent. D) 75.5 percent. E) none of the above.
Under the conditions of monopolistic competition:
A. prices are always lower in the long run than in the short run. B. firm profits are always higher in the long run than in the short run. C. average costs of production are always higher in the short run than in the long run. D. None of these is correct.
Suppose the economy's production function is Y = A(300N - N2). The marginal product of labor is MPN = A(300 - 2N). Suppose that A = 10. The supply of labor is NS = 0.05w + 0.005G.(a)If G is 26,000, what are the real wage, employment, and output?(b)If G rises to 26,400, what are the real wage, employment, and output?(c)If G falls to 25,600, what are the real wage, employment, and output?(d)In cases (b) and (c), what is the government purchases multiplier; that is, what is the change in output divided by the change in government purchases?
What will be an ideal response?