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 271 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
Gracias!


irishcancer18

  • Member
  • Posts: 310
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

Did you know?

Patients should never assume they are being given the appropriate drugs. They should make sure they know which drugs are being prescribed, and always double-check that the drugs received match the prescription.

Did you know?

All adults should have their cholesterol levels checked once every 5 years. During 2009–2010, 69.4% of Americans age 20 and older reported having their cholesterol checked within the last five years.

Did you know?

More than 20 million Americans cite use of marijuana within the past 30 days, according to the National Survey on Drug Use and Health (NSDUH). More than 8 million admit to using it almost every day.

Did you know?

All adverse reactions are commonly charted in red ink in the patient's record and usually are noted on the front of the chart. Failure to follow correct documentation procedures may result in malpractice lawsuits.

Did you know?

The calories found in one piece of cherry cheesecake could light a 60-watt light bulb for 1.5 hours.

For a complete list of videos, visit our video library