In the graph below, the price of capital is $500 per unit. Which of the following combinations of capital and labor lies on the expansion path?
A. 500L, 100K
B. 1100L, 220K
C. 800L, 160K
D. both a and b
E. none of the above
Answer: E
You might also like to view...
The structure of an organization is influenced by transactions costs
Indicate whether the statement is true or false
Macroeconomists think that
a. most questions about individual markets are more important than the overall economy. b. questions of overall unemployment are less important than the jobs of particular workers. c. the details of resource allocation and individual market prices are less important than the amount of national output. d. the causes of unemployment usually lie with the personalities of individual workers. e. the price of particular products is more important than the overall price level.
What is Calvin’s opportunity cost to produce 4 yards of cloth?
a. 3/4 pound of food
b. 1 pound of food
c. 3 pounds of food
d. 4 pounds of food
In a monopsonistic labor market, the employer will maximize profits by employing workers up to that point at which:
A. the difference between the wage rate and marginal resource (labor) cost is at a maximum. B. marginal revenue product equals marginal resource (labor) cost. C. the wage rate equals marginal revenue product. D. the wage rate equals marginal resource (labor) cost.