A firm combines two resources, A and B, to produce an output Q. Their respective marginal revenue products are $30 and $21. A costs $15 a unit and B $7 a unit. To reduce the cost of Q:
A. More B and less A should be used
B. More A and less B should be used
C. More of both resources should be used
D. Less of both resources should be used
A. More B and less A should be used
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The basic data source to track the number of unemployed comes from a calculation of applications for new unemployment benefits
a. True b. False Indicate whether the statement is true or false
Refer to Figure 1A.2. If this consumer rents zero DVDs, how many movie tickets will she purchase?
A. 0 B. 5 C. 10 D. 15
In the case of perfectly elastic supply, the supply curve is:
A. upward sloping. B. downward sloping. C. vertical. D. horizontal.
Graphically illustrate and explain the effects of an increase in the rate of technological progress on the Solow growth model. In your answer, you must clearly label all curves and the initial and final equilibria. In your answer, explain what happens to the rate of growth of output per worker and the rate of growth of output as the economy adjusts to this increase in the rate of technological
progress. What will be an ideal response?