Refer to Figure 7-4. The efficient quantity of medical services is
A) 200. B) 500. C) 700. D) >700.
B
You might also like to view...
Suppose you have $200 with which you can buy shares of stock from two companies: ABC Hot Chocolate Company and XYZ Lemonade. Each company's stock currently sells for $100 per share. If the temperature next year is lower than average, the stock price for ABC will increase by $20, and the stock price for XYZ will not change. If the temperature next year is higher than average, the stock price for XYZ will increase by $20, and the stock price for ABC will not change. There is a 50% chance that it will be colder than average next year, and a 25% chance that it will be warmer than average. If you purchase two shares of ABC stock and no shares of XYZ stock, your expected gain will be ________.
A. $0 B. $20 C. $40 D. $30
Why would a firm pay efficiency wages?
What will be an ideal response?
Which type of firm has no control over its price?
A. price setter B. price maker C. zero price setter D. price taker
(Appendix) In the production function Q = 10L1/2K1/2, calculate the slope of the isoquant when the entrepreneur is producing efficiently with 9 laborers and 16 units of capital. (Hint: The slope of the isoquant = the ratio of the marginal product of labor to the marginal product of capital.)
What will be an ideal response?