Question 1
Refer to the information provided in Figure 10.3 below to answer the question(s) that follow.
Refer to Figure 10.3. The market wage is initially
W
1 and the firm is initially at Point
B. Labor supply increases from
S
1 to
S
0. If the firm does not change the amount of capital it employs, the firm will move to Point ________ to maximize profits.
◦
A ◦
C ◦
E ◦
F Question 2
Refer to the information provided in Figure 10.3 below to answer the question(s) that follow.
Refer to Figure 10.3. The market wage is initially
W
1 and the firm is initially at Point
B. Labor supply increases from
S
1 to
S
0. The firmʹs
MRPL curve will shift from
MRPL at
K
2 to
MRPL at
K
1 because
◦ the factor substitution effect will cause the firm to substitute capital for the lower-priced labor.
◦ the supply of labor increased and therefore the productivity of labor increased.
◦ the output effect led to ann increase in the demand for capital, which in turn increased the productivity of labor.
◦ the firm is no longer maximizing profits.
The cube of insulating material shown in the figure has one corner at the origin. Each side of ...
economic question
economic question
economic question
economic question (having trouble)
PEDIGREE TO ANALYZE AND ANSWER IMAGE PLEASE