Suppose firms A and B each make T-shirts. Firm A's production function is q = L0.5 K0.5. Firm B's production function is q = 1.2 ? L0.5 K0.5
If the two firms each hire the same amounts of capital and labor, compare the two firms in terms of APL and MPL.
Firm B's APL and MPL will equal 1.2 times the APL and MPL of firm A.
Economics
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When the price of a pizza decreases from $12 to $10, it is definitely the case that the
A) income effect means people buy less pizza. B) substitution effect means people buy more pizza. C) quantity demanded of pizza will not change. D) None of the above answers is correct.
Economics
TANF provides benefits that raise recipients to the poverty line
Indicate whether the statement is true or false
Economics