This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Suppose our firm produces chartered business flights with capital (planes) and labor (pilots) in ... (Read 131 times)

rl

  • Hero Member
  • *****
  • Posts: 579
on: Jul 1, 2018
Suppose our firm produces chartered business flights with capital (planes) and labor (pilots) in fixed proportion (i.e., one pilot for each plane).
 
  If the wage rate paid to the pilots increases relative to the rental rate of capital for the airplanes, then: A) the optimal capital-labor ratio should increase.
  B) the optimal capital-labor ratio should decrease.
  C) the optimal capital-labor ratio remains the same.
  D) We do not have enough information to answer this question.

Question 2

Which of the following statements about the composition of price indices is NOT true?
 
  A) The Paasche index is calculated with current-year prices.
  B) The Paasche index is calculated with base-year quantities for the bundle.
  C) The Laspeyres index is calculated with current-year prices.
  D) The Laspeyres index is calculated with base-year quantities for the bundle.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

bookworm410

  • Sr. Member
  • ****
  • Posts: 341
Reply #1 on: Jul 1, 2018
Answer to Question 1

C

Answer to Question 2

B


rl

  • Member
  • Posts: 579
Reply 2 on: Jul 1, 2018
YES! Correct, THANKS for helping me on my review

amynguyen1221

  • Member
  • Posts: 355
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

Stroke kills people from all ethnic backgrounds, but the people at highest risk for fatal strokes are: black men, black women, Asian men, white men, and white women.

Did you know?

Not getting enough sleep can greatly weaken the immune system. Lack of sleep makes you more likely to catch a cold, or more difficult to fight off an infection.

Did you know?

Studies show that systolic blood pressure can be significantly lowered by taking statins. In fact, the higher the patient's baseline blood pressure, the greater the effect of statins on his or her blood pressure.

Did you know?

Approximately 15–25% of recognized pregnancies end in miscarriage. However, many miscarriages often occur before a woman even knows she is pregnant.

Did you know?

A headache when you wake up in the morning is indicative of sinusitis. Other symptoms of sinusitis can include fever, weakness, tiredness, a cough that may be more severe at night, and a runny nose or nasal congestion.

X chromosome inactivation in female mammals produces the Barr Body. X chromosome inactivation in female mammals produces the Barr Body.
The clock generator produces a series of pulses that are used by the microprocessor and other ... The clock generator produces a series of pulses that are used by the microprocessor and other ...
Capital’s Share of Income in a Cross-Section of Countries Capital’s Share of Income in a Cross-Section of Countries
Business Intelligence, Analytics, and Data Science: A Managerial Perspective, 4th Edition Business Intelligence, Analytics, and Data Science: A Managerial Perspective, 4th Edition
Business Vector Icon Business Vector Icon
Suppose a country imports televisions. The country's supply and demand curves are shown in ... Suppose a country imports televisions. The country's supply and demand curves are shown in ...
Video: Bone elongation - processes at the epiphyseal plate

For a complete list of videos, visit our video library