Author Question: A firm uses two inputs, labor (L) and capital (K) in the production of umbrellas. It can invest ... (Read 110 times)

jrubin

  • Hero Member
  • *****
  • Posts: 552
A firm uses two inputs, labor (L) and capital (K) in the production of umbrellas. It can invest 50,000 in the purchase of the two inputs annually. The firm hires 5 units of capital at 1,000 per unit. If the going annual wage rate is 4,500, calculate the number of workers employed by the firm. (Assume that the firm spends the entire budget on K and L.)
 a. 10
  b. 5
  c. 15
  d. 9

Question 2

A perfectly competitive firm's pricing decision depends on:
 a. whether the firm wants to maximize profits or not.
  b. whether the firm wants to maximize sales revenue or not.
  c. the firm's costs.
  d. whether it wants to compete with other firms in the market or not.
  e. the market supply and demand.



FergA

  • Sr. Member
  • ****
  • Posts: 352
Answer to Question 1

A

Answer to Question 2

e



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question


 

Did you know?

Only one in 10 cancer deaths is caused by the primary tumor. The vast majority of cancer mortality is caused by cells breaking away from the main tumor and metastasizing to other parts of the body, such as the brain, bones, or liver.

Did you know?

Of the estimated 2 million heroin users in the United States, 600,000–800,000 are considered hardcore addicts. Heroin addiction is considered to be one of the hardest addictions to recover from.

Did you know?

Aspirin may benefit 11 different cancers, including those of the colon, pancreas, lungs, prostate, breasts, and leukemia.

Did you know?

Individuals are never “cured” of addictions. Instead, they learn how to manage their disease to lead healthy, balanced lives.

Did you know?

Tobacco depletes the body of vitamins A, C, and E, which can result in any of the following: dry hair, dry skin, dry eyes, poor growth, night blindness, abscesses, insomnia, fatigue, reproductive system problems, sinusitis, pneumonia, frequent respiratory problems, skin disorders, weight loss, rickets, osteomalacia, nervousness, muscle spasms, leg cramps, extremity numbness, bone malformations, decayed teeth, difficulty in walking, irritability, restlessness, profuse sweating, increased uric acid (gout), joint damage, damaged red blood cells, destruction of nerves, infertility, miscarriage, and many types of cancer.

For a complete list of videos, visit our video library