A U.S. firm currently produces 200 units of output according to the production function q = L0.5K0.5 and faces input prices equal to wU.S. = rU.S = $11. Should the U.S
firm move their company abroad where they will face input prices equal to wabroad = $6.50 and rabroad = $15.00? A) Yes, because the total costs will fall from $3,859 to $2,810.
B) No, because the total costs will increase from $2,810 to $3,859.
C) No, because the firm has decreasing returns to scale.
D) Not enough information is given to answer this problem.
A
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Which of the following situations is least likely to involve mutual interdependence?
A) Canada is thinking about banning all imported beef from the United States. B) Octavia is thinking about trading in her Toyota Prius for a BMW 220i. C) Walmart is considering moving up the start-time for its Black Friday sales to 12:01 AM on Thanksgiving day. D) McDonald's is thinking about lowering all its menu prices by 50 percent.
If a financial asset is liquid, it is:
A. a highly desirable asset. B. an online asset and has no physical piece of paper associated with it. C. an asset that can easily be converted into cash. D. considered to be a safe asset with no chance of being deleveraged.
A minimum price, set by the government, that sellers may charge for a good is known as
A. a price rationing mechanism. B. a subsidy. C. a price ceiling. D. a price floor.
By 2040, the dependency ratio for Japan is expected to be closest to which number?
A) 1 to 1 B) 1.5 to 1 C) 3 to 1 D) 5 to 1