Author Question: Refer to the information provided in Figure 7.6 below to answer the question(s) that follow. Refer ... (Read 28 times)

HCHenry · **on:** Apr 19, 2019

Question 1

Refer to the information provided in Figure 7.6 below to answer the question(s) that follow.

Refer to Figure 7.6. If the price of capital is $10 and the price of labor is $20, the optimal production technique is

◦ A.
◦ B.
◦ C.
◦ D.

Question 2

Refer to the information provided in Figure 7.6 below to answer the question(s) that follow.

Refer to Figure 7.6. If this shoe manufacturer increases labor from 20 to 25 (moving along the given isoquant with
Q=50), the marginal product of the 25th worker

◦ is zero, as the total number of shoes produced remains at 50.
◦ is 7.5, as capital can be reduced by 7.5 units when the 25th worker is hired.
◦ cannot be determined because output remains constant.
◦ cannot be determined because both capital and labor have been increased.

ebonylittles · **Reply #1 on:** Apr 19, 2019

A FREE account is required to view all solutions!

Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.

Answer Preview

Only 49% of students answer this correctly