Refer to the given data. Assuming the prices of resources a and b are $5 and $8 respectively, what is the least costly combination of resources for the firm to employ in producing 192 units of output?
Answer the question on the basis of the following marginal product data for resources a and b. The output of these independent resources sells in a purely competitive market at $1 per unit.
A. 2 of a and 6 of b.
B. 6 of a and 2 of b.
C. 4 of a and 3 of b.
D. 3 of a and 4 of b.
D. 3 of a and 4 of b.
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A real depreciation will tend to cause
A) a reduction in exports. B) an increase in imports. C) a reduction in net exports. D) an increase in demand for domestic goods. E) none of the above
When a monopolist's marginal cost of production is zero:
a. the deadweight loss is reduced. b. production is lower than if marginal cost were positive. c. the price charged is higher than if marginal cost were positive. d. maximizing profit is same as maximizing revenue.