Jane is a dietician in a city that twenty years ago voted to restrict the number of dieticians in the city to five and to regulate their prices
Although the city has tripled in size during that time (and thus demand has increased), no new dietician licenses have been issued. Over the years Jane and the other license holders have begun offering a wide variety of perks to their clients to maintain market share. It is clear that the initial restriction on licenses gave Jane a _____. a. monopoly b. transitional gain c. transitional loss
d. sense of security
b
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Using a Cobb-Douglas production function, Y/N = (K/N)b, the marginal product of capital is
A) b(K/N)b-1. B) b(K/N). C) (K/N)b-1. D) (K/Y)b.
Refer to the diagram. If labor is the only variable input, the marginal product of labor is at a:
A. maximum at point a.
B. minimum at point a.
C. maximum at point b.
D. minimum at point b.