Suppose that a firm uses both labor (L) and capital (K) as inputs. The firm's long-run production function is Q = F(L,K) = 5?L?K. If the firm has 100 units of capital, what is its short-run production function?
A. Q = F(K) = 50?K
B. Q = F(L) = 500?L
C. Q = F(L,K) = 50?L?K
D. Q = F(L) = 50?L
D. Q = F(L) = 50?L
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A) zero elasticity. B) some positive finite elasticity. C) negative elasticity. D) perfect elasticity.
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a. they convey information about which goods are scarce and which are plentiful. b. economies based on price systems are more flexible than centrally planned economies. c. economies based on price systems are more likely than centrally planned economies to minimize the cost of producing society's output. d. All of the above are correct.
The fact that U.S. managers' salaries are substantially higher than the salaries of comparable managers in Japan may be related to the fact that:
A. there are no government controls on CEOs' earnings in the United States. B. the demand for CEOs has decreased. C. the supply of CEOs has decreased. D. there are more natural monopolies in the United States.
Market share is the percentage of total
A. Market output produced by the four largest firms in an industry. B. Industry profit earned by a single firm. C. Market output produced by a single firm. D. Market output produced by the largest firm in an industry.