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 144 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
Wow, this really help

vickyvicksss

  • Member
  • Posts: 351
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

Eat fiber! A diet high in fiber can help lower cholesterol levels by as much as 10%.

Did you know?

The National Institutes of Health have supported research into acupuncture. This has shown that acupuncture significantly reduced pain associated with osteoarthritis of the knee, when used as a complement to conventional therapies.

Did you know?

Atropine was named after the Greek goddess Atropos, the oldest and ugliest of the three sisters known as the Fates, who controlled the destiny of men.

Did you know?

More than 30% of American adults, and about 12% of children utilize health care approaches that were developed outside of conventional medicine.

Did you know?

Many of the drugs used by neuroscientists are derived from toxic plants and venomous animals (such as snakes, spiders, snails, and puffer fish).

Hypothyroidism. Hyposecretion of the thyroid gland produces the symptoms that are illustrated. Hypothyroidism. Hyposecretion of the thyroid gland produces the symptoms that are illustrated.
Stages of labor. Stages of labor.
Business Letter Format and Example. Business Letter Format and Example.
Marginal Products of Physical and Human Capital Marginal Products of Physical and Human Capital
When operating your own business, it is wise to know your cost of capital and that of the ... When operating your own business, it is wise to know your cost of capital and that of the ...
One generation of random mating produces Hardy–Weinberg equilibrium One generation of random mating produces Hardy–Weinberg equilibrium
Video: Integumentary Anatomy

For a complete list of videos, visit our video library