Suppose that the production function for the economy is: Y = AK1/4L3/4. Assume that A = 1,000, the capital stock is $32,000 billion, and the labor force is 120 million (or 0.120 billion) workers., The value of the marginal product of capital is
A) $0.0147.
B) $0.0213.
C) $0.0597.
D) $0.25.
B
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In the short run, if price is below AC, maximizing profits really means minimizing total losses.
Answer the following statement true (T) or false (F)
A country has a population of 5 million. The labor force is 3.5 million, and the number of people not working but actively looking is 140,000. What is the unemployment rate?
a. 70% b. 140,000 c. 4% d. 2.8%
Because price and quantity demanded are inversely related,
a. the demand curve is usually upward-sloping b. buyers purchase more of the good as the price rises c. the supply curve must be rising d. price and quantity supplied must be positively related e. the demand curve is usually downward-sloping
In oligopoly, one expects
a. frequent introduction of new or redesigned products. b. aggressive advertising campaigns. c. intense marketing research into the impact of price changes. d. All of the above are correct.