A firm uses two inputs, labor (L) and capital (K) in the production of umbrellas. It can invest $50,000 in the purchase of the two inputs annually. The firm hires 5 units of capital at $1,000 per unit. If the going annual wage rate is $4,500, calculate the number of workers employed by the firm. (Assume that the firm spends the entire budget on K and L.)
a. 10
b. 5
c. 15
d. 9
A
Economics
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To maximize sales revenue, an oligopolist will expand output until the elasticity of demand becomes
a. negative. b. zero. c. one. d. infinite.
Economics
Governments may choose to intervene in a market in an attempt to:
A. discourage the consumption of certain goods. B. encourage the consumption of certain goods. C. redistribute surplus. D. All of these are true.
Economics