Suppose the production function for coffee (C) is C = min(B,W), where B = beans in pounds and W = water in gallons. Suppose the price of water is $.10 per gallon and the price of beans is $10 per pound. The cost minimizing combination of beans and water for C = 200 is
a. B = 200, W = 2000
b. B = 2000, W = 200
c. B = 100, W = 100
d. B = 200, W = 200
d
You might also like to view...
Russia experienced a hyperinflation of 2,500 percent per year in the early 1990s, which dipped to 10 percent per year by 2006
a. True b. False Indicate whether the statement is true or false
In an economy in which aggregate demand is stable and a period of sustained and significant productivity growth occurs, there will be
A. a shift of aggregate supply to the left. B. a constant price level. C. secular deflation. D. secular inflation.
If pollutants from smoke stacks in a city such as Newark causes people to paint their homes and cars more frequently, this implies
A. external costs on home and car owners. B. external benefits to the home and car owners. C. internal cost to home and car owners. D. none of these.
If Country A's central bank wanted to increase the value of its currency, its reserves account in the balance of payments would:
a. Become more negative. b. Become more positive. c. Not change. d. Change only if there were no offsetting changes in the net errors and omissions account.