Suppose a firm uses both labor (L) and capital (K) and its long-run production function is given by the expression Q = F(L,K) = L2 × ?(L + 2K). The firm currently uses 100 units of capital. Assuming labor is finely divisible, graph the firm's short-run production function for the first five workers.
What will be an ideal response?
You might also like to view...
If Jane's marginal benefit as a consumer in the jeans market is larger than the price of a pair of jeans:
A. Jane will not purchase any more jeans. B. Jane can benefit by purchasing more jeans. C. the opportunity cost of a pair of jeans is lower than the price. D. Jane will decrease her total utility by purchasing more jeans.
In order to achieve market power, monopolistically competitive firms use
A. predatory pricing. B. strategic behavior. C. product differentiation. D. their size.
A weakening in consumer confidence causes a
A) shift of the aggregate demand curve to the right. B) movement down along the aggregate demand curve. C) shift of the aggregate demand curve to the left. D) movement up along the aggregate demand curve.
Which of the following is not a major trading partner of the U.S.?
a. Canada b. Mexico c. Russia d. China