Author Question: Suppose the long-run cost function is C = 3q. What is the cost-output elasticity for this case? ... (Read 81 times)

casperchen82 · **on:** Jul 1, 2018

Suppose the long-run cost function is C = 3q. What is the cost-output elasticity for this case?

A) 1
B) 3
C) 1/3
D) 2

Question 2

The Acme Company is a perfect competitor in its input markets and a monopolist in its output market. The marginal product of labor is 20 and the price of Acme's output is 10. For Acme Company, the marginal revenue product of labor is

A) less than 10.
B) 10.
C) 20.
D) less than 200.
E) 200