Author Question: Suppose the production of VCRs can be represented by the following production function: q = L0.4 ... (Read 60 times)

bio_gurl · **on:** Jul 1, 2018

Suppose the production of VCRs can be represented by the following production function: q = L0.4 K0.4. The firm currently produces units. If all inputs doubled, the new level of output will equal

A) 20.4 q1.
B) 20.8 q1.
C) 0.8 q1.
D) 1.6 q1.

Question 2

For a perfect-price-discriminating monopoly, the marginal revenue curve

A) lies below the demand curve.
B) is the demand curve.
C) varies for each consumer.
D) is the same as the monopolist's marginal revenue curve.