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 228 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
:D TYSM


mochi09

  • Member
  • Posts: 335
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

Did you know?

Though “Krazy Glue” or “Super Glue” has the ability to seal small wounds, it is not recommended for this purpose since it contains many substances that should not enter the body through the skin, and may be harmful.

Did you know?

Although puberty usually occurs in the early teenage years, the world's youngest parents were two Chinese children who had their first baby when they were 8 and 9 years of age.

Did you know?

More than 150,000 Americans killed by cardiovascular disease are younger than the age of 65 years.

Did you know?

Intradermal injections are somewhat difficult to correctly administer because the skin layers are so thin that it is easy to accidentally punch through to the deeper subcutaneous layer.

Did you know?

There are major differences in the metabolism of morphine and the illegal drug heroin. Morphine mostly produces its CNS effects through m-receptors, and at k- and d-receptors. Heroin has a slight affinity for opiate receptors. Most of its actions are due to metabolism to active metabolites (6-acetylmorphine, morphine, and morphine-6-glucuronide).

For a complete list of videos, visit our video library