Suppose a firm's costs are F + v ? q2 where F and v are positive real numbers and the firm sells its product at the market determined price p. Profits are calculated using
A) p ? q - F - v ? q2.
B) [p -(F/q + v ? q)] ? q.
C) [(p ? q)/q -(F + v ? q)/q] ? q.
D) Both A and B.
D
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One of the most widely reported measures of inflation is the: a. consumer price index. b. producer price index. c. GDP deflator
d. Gini coefficient. e. real interest rate.
Consider the production function Q = F(L,K) = 5L2K2. Does this technology have increasing, decreasing or constant returns to scale? Explain your answer in two different ways.
What will be an ideal response?
Financial markets are important for bringing equilibrium to the loanable funds market, but do not affect the efficient allocation of scarce resources in the long-run
a. True b. False Indicate whether the statement is true or false
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. The economy is currently at Point A. The opportunity cost of moving from Point A to Point B is the
A. 30 LCD televisions that must be forgone to produce 60 additional OLED televisions. B. 90 LCD televisions that must be forgone to produce 20 additional OLED televisions. C. 30 LCD televisions that must be forgone to produce 20 additional OLED televisions. D. 120 LCD televisions that must be forgone to produce 40 additional OLED televisions.