Homer's Donut Shoppe has the production function q = 10L +20L2 - 5L3. The average product of labor is

A) AP = 10 + 20L - 5L2
B) AP = 10 + 40L - 15L2
C) AP = 10L
D) AP = 10 + 20L

A

Economics

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If the U.S. government increased its holdings of British pounds, definitely

A) the capital and financial account would increase. B) the capital and financial account would decrease. C) there would be an increase in U.S. official reserves. D) there would be a decrease in U.S. official reserves.

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Goods X and Y are complementary goods. A decrease in price of good X has occurred. In the market for good Y, this will lead to

A) an increase in price and a decrease in quantity. B) an increase in price and an increase in quantity. C) a decrease in price and a decrease in quantity. D) a decrease in price and an increase in quantity.

Economics