A firm can minimize cost by
A) picking the bundle of inputs where the lowest isocost line touches the isoquant.
B) picking the bundle of inputs where the isoquant is tangent to the isocost line.
C) picking the bundle of inputs where the last dollar spent on one input gives as much extra output as the last dollar spent on any other input.
D) All of the above.
D
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Velocity of money is the ratio of ________
A) real GDP to money demand B) money supply to money demand C) nominal GDP to money supply D) nominal GDP to money demand
To determine the marginal physical product of labor, you must
a. hold total output constant and calculate how much revenue an additional worker generates b. hold capital constant and calculate how much revenue an additional worker generates hold capital constant c. hold all other factors of production constant and calculate how much output an additional worker produces d. hold labor constant and calculate how much output an additional worker produces e. hold labor constant and calculate how much revenue an additional worker generates