If Q represents a firm's level of output, W represents the wage paid to labor (L) and R is the cost of capital (K), then which of the following represents the firm's cost function?
B. C(Q) = FC(Q) + VC(Q)
C. C(Q) = WL + RK
D. C(Q) = (W + R)Q
A. C(Q) = FC + VC(Q)
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Indicate whether the statement is true or false
The budget line can shift or rotate
A) only when income changes. B) only when prices change. C) when either income or prices change. D) None of the above, because changes in income and prices do not shift or rotate the budget line.
Which of the following will not cause a movement along the supply curve?
a. Changes in the sellers' expectations. b. Increases in taxes per unit of output. c. Advances in technology. d. All of these.
When economists talk about a balance of payments "deficit," they refer to:
a. a net balance in the balance of payments that is less than zero. b. a condition in which total credits exceed total debits in the balance of payments. c. a deficit in one of the sub-accounts of the balance of payments. d. a disequilibrium in the foreign exchange market. e. a net loss in the trade of international goods and services.