A firm can use 5 workers and 10 machines, 7 workers and 9 machines, or 8 workers and 9 machines to produce four cars. If each worker costs $200 and each machine is rented for $50, the economically efficient input combination is:
A. 8 workers and 9 machines.
B. 7 workers and 9 machines.
C. 5 workers and 10 machines.
D. 12 workers and 19 machines.
Answer: C
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The minimum point of a U-shaped curve
A) is a point where the variable is neither increasing nor decreasing. B) has a slope equal to zero. C) has the maximum slope possible. D) Both answers A and B are correct. E) Both answers A and C are correct.
The above figure shows the market for the three moving companies in a small nation
If the movers act as perfect competitors, what is the price per mile and the number of miles per year? If the movers collude and act as a single monopoly, what is the price per mile and the number of lines per year?
A speculator becomes the floating-rate payer in an interest-rate swap. She hopes that
A) long rates rise. B) long rates fall. C) short rates rise. D) short rates fall.
If the required reserve ratio was 25 percent, a bank that received currency deposits of $16,000:
a. could now issue $64,000 of new loans. b. could now issue $16,000 of new loans. c. could now issue $12,000 of new loans. d. could now issue $4,000 of new loans.