This topic contains a solution. Click here to go to the answer

Author Question: Suppose labor and capital are variable inputs. The wage rate is 20 per hour, the marginal product of ... (Read 62 times)

ec501234

  • Hero Member
  • *****
  • Posts: 573
Suppose labor and capital are variable inputs. The wage rate is 20 per hour, the marginal product of labor is 30 units, the rental rate of capital is 100 per machine hour, and the marginal product of capital is 150 units.
 
  If the wage rate declines to 15 per hour, the firm employs more labor and the marginal product of labor declines to 20 units. Assuming the rental rate of capital remains the same, what happens to the amount of capital used by the firm? A) Decreases
  B) Increases
  C) No change
  D) We do not have enough information to answer this question.

Question 2

When a product transformation curve for a firm is bowed inward, there are ________ in production.
 
  A) economies of scope
  B) economies of scale
  C) diseconomies of scope
  D) diseconomies of scale



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

tanna.moeller

  • Sr. Member
  • ****
  • Posts: 328
Answer to Question 1

B

Answer to Question 2

C




ec501234

  • Member
  • Posts: 573
Reply 2 on: Jul 1, 2018
:D TYSM


pratush dev

  • Member
  • Posts: 321
Reply 3 on: Yesterday
Gracias!

 

Did you know?

In 1885, the Lloyd Manufacturing Company of Albany, New York, promoted and sold "Cocaine Toothache Drops" at 15 cents per bottle! In 1914, the Harrison Narcotic Act brought the sale and distribution of this drug under federal control.

Did you know?

Vaccines prevent between 2.5 and 4 million deaths every year.

Did you know?

The average adult has about 21 square feet of skin.

Did you know?

Serum cholesterol testing in adults is recommended every 1 to 5 years. People with diabetes and a family history of high cholesterol should be tested even more frequently.

Did you know?

Asthma attacks and symptoms usually get started by specific triggers (such as viruses, allergies, gases, and air particles). You should talk to your doctor about these triggers and find ways to avoid or get rid of them.

For a complete list of videos, visit our video library