Suppose the production function for T-shirts can be represented as q = L0.25 K0.75. Show that the isoquants for this function are convex
What will be an ideal response?
The slope of the isoquant is -MPL/MPK = -K/3L. As L increases and K decreases, this value becomes absolutely smaller, implying a flatter slope.
Economics
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Which of the following government policies might increase labor supply?
a. Increasing transfer payments to the needy. b. Decreasing income tax rates. c. Increasing income tax rates. d. Increasing the availability of government training programs. e. Increase payroll taxes.
Economics
If total utility is decreasing, then marginal utility is
A) negative. B) positive. C) zero. D) increasing.
Economics