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

Author Question: Borrowers are ________ of loanable funds, and lenders are ________ of loanable funds. A) ... (Read 230 times)

Yi-Chen

  • Hero Member
  • *****
  • Posts: 550
Borrowers are ________ of loanable funds, and lenders are ________ of loanable funds.
 
  A) suppliers; demanders B) demanders; suppliers
  C) demanders; demanders D) suppliers; suppliers

Question 2

Mike's Pretzels employs labor at a wage rate of 8 per hour and rents capital for 20 per hour. At its current level of labor and capital, the marginal product of labor is 24 and the marginal product of capital is 55 .
 
  Is the firm currently maximizing profit? Explain.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

nicoleclaire22

  • Sr. Member
  • ****
  • Posts: 318
Answer to Question 1

B

Answer to Question 2

No, the firm is not currently maximizing profit. The firm should hire labor and capital such that MPL/PL is equal to MPK/PK. In this case, MPL/PL (3) is greater than MPK/PK (2.75). Thus, the firm should hire more labor (which would lower MPL) and less capital (which would raise MPK).




Yi-Chen

  • Member
  • Posts: 550
Reply 2 on: Jun 29, 2018
Excellent


billybob123

  • Member
  • Posts: 336
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

Did you know?

Barbituric acid, the base material of barbiturates, was first synthesized in 1863 by Adolph von Bayer. His company later went on to synthesize aspirin for the first time, and Bayer aspirin is still a popular brand today.

Did you know?

The effects of organophosphate poisoning are referred to by using the abbreviations “SLUD” or “SLUDGE,” It stands for: salivation, lacrimation, urination, defecation, GI upset, and emesis.

Did you know?

Historic treatments for rheumatoid arthritis have included gold salts, acupuncture, a diet consisting of apples or rhubarb, nutmeg, nettles, bee venom, bracelets made of copper, prayer, rest, tooth extractions, fasting, honey, vitamins, insulin, snow collected on Christmas, magnets, and electric convulsion therapy.

Did you know?

Approximately 70% of expectant mothers report experiencing some symptoms of morning sickness during the first trimester of pregnancy.

Did you know?

Amphetamine poisoning can cause intravascular coagulation, circulatory collapse, rhabdomyolysis, ischemic colitis, acute psychosis, hyperthermia, respiratory distress syndrome, and pericarditis.

For a complete list of videos, visit our video library