If a firm faces perfectly competitive product and factor markets and the marginal product of labor and capital are 4 and 9, respectively, while the wage rate is $2 and the rental rate on capital is $4, the firm should
A) use relatively more capital.
B) use relatively less capital.
C) increase all inputs proportionately.
D) decrease all inputs proportionately.
Answer: A
Economics
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A firm's average fixed cost when producing 2,000 units of output equals $10 . When only 1,000 units of output are produced: a. AFC must still equal $10
b. AFC must equal $20. c. AFC must equal $5. d. marginal cost must equal $20.
Economics
If the U.S. dollar price of the New Zealand dollar (NZD) is $0.5709, then the NZD price of one U.S. dollar will be:
a. 1.5709 NZD. b. 1.75 NZD. c. 1.6711 NZD. d. 0.5709 NZD. e. 1.75 NZD.
Economics