Refer to the information provided in Table 8.4 below to answer the question(s) that follow.
Table 8.4ProduceUsing TechniquesUnits of Variable KInputs L1 unit of outputA4 4?B2 6????2 units of outputA 7 6?B410????3 units of outputA 8 6?B 6 11Refer to Table 8.4. Assuming the price of capital (K) is $10 per unit and the price of labor (L) is $5 per unit, the marginal cost of producing the third unit of output is
A. $15.
B. $20.
C. $25.
D. indeterminate from this information.
Answer: B
You might also like to view...
Brian is running for state senator and if elected, pledges to improve economic growth. His plan for economic growth includes increasing spending on public education and providing tax incentives to encourage improved private education
His plan is likely to A) slow economic growth because it includes a provision for private education. B) have no effect on economic growth because property rights are not changed. C) speed economic growth as the quality of resources improve. D) fail because the provision for private education limits government involvement in education. E) have no effect on economic growth because government spending cannot affect the economic growth rate.
The most important implicit cost generally omitted from the accounting statement of a firm is the
a. rental cost of machinery. b. cost of compliance with government regulations. c. opportunity cost of the equity capital invested by the owners. d. accounting cost incurred as the result of tax compliance.
In the treatment of American exports and imports, national income accountants
A. subtract exports, but add imports, in calculating GDP. B. subtract both exports and imports in calculating GDP. C. add both exports and imports in calculating GDP. D.add exports, but subtract imports in calculating GDP.
Which of the following statements is correct??
A. The fact that the firms in an oligopoly are mutually interdependent means that individual firms do not have any market power. B. All else? constant, a monopoly firm has more market power than a monopolistically competitive firm. C. The amount of market power a firm possesses is unrelated to the type of market in which it operates. D. So long as a firm is sufficiently? large, it will have some amount of market? power, regardless of the type of market in which it operates.