In the following graph, the price of capital is $12 per unit. How many units of labor should the firm use in order to produce 200 units of output at the least cost?
A. 22 units of labor
B. 30 units of labor
C. 18 units of labor
D. 40 units of labor
E. 12 units of labor
Answer: A
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The study of how people make decisions in situations where attaining their goals depends on their interactions with others is called
A) game theory. B) dominant strategy equilibrium. C) the prisoner's dilemma. D) Nash equilibrium.
In the signaling theory of education,
a. discrimination does not affect wage differentials. b. schooling makes workers more productive in the long-run. c. schooling makes workers more productive in the short-run. d. the worker signals to the employer that he is a valuable employee because he was willing to spend time to get an education.
The period of growth in real GDP between the trough of the business cycle and the next peak is called the:
A. recessionary phase. B. recovery phase. C. contractionary phase. D. cyclical phase.
Consider a call option; in terms of the option writer and option holder, who is the buyer? Who is the seller? Finally, who has the option? Explain.
What will be an ideal response?