Answer the question on the basis of the following information: Suppose 30 units of product A can be produced by employing just labor and capital in the four ways shown below. Assume the prices of labor and capital are $2 and $3, respectively. If the price of product A is $0.50, the firm will realize
A) an economic profit of $4.
B) an economic profit of $2.
C) an economic profit of $6.
D) a loss of $3.

Question

Answer the question on the basis of the following information: Suppose 30 units of product A can be produced by employing just labor and capital in the four ways shown below. Assume the prices of labor and capital are $2 and $3, respectively.  If the price of product A is $0.50, the firm will realize
A) an economic profit of $4. 
B) an economic profit of $2. 
C) an economic profit of $6. 
D) a loss of $3.

Quizplus · Accepted Answer

The Answer of Answer the question on the basis of the following information: Suppose 30 units of product A can be produced by employing just labor and capital in the four ways shown below. Assume the prices of labor and capital are $2 and $3, respectively.  If the price of product A is $0.50, the firm will realize
A) an economic profit of $4. 
B) an economic profit of $2. 
C) an economic profit of $6. 
D) a loss of $3.

Answer the Question on the Basis of the Following Information