Suppose the payments to capital and labor are (w*L*) /Y* = 2/3 and (r*L*) /Y* = 1/3,respectively.One implication of this result is that __________ and profits are __________.
A) w*L* + r*K* = Y*;positive
B) w*L* + r*K* = Y*;equal to zero
C) w*L* + r*K* = Y*;negative
D) (w*L* - r*K*) = Y*;equal to zero
E) (w*L*/Y*) (r*K*/Y*) = 0;negative
Correct Answer:
Verified
Q48: In the Cobb-Douglas production function
Q49: In the Cobb-Douglas production function
Q50: The equation MPK = r* yields:
A)the amount
Q50: If MPL < w, the firm:
A) has
Q51: The equation Q52: If MPK = r,the firm: Q55: The marginal product of labor curve represents: Q56: In the Cobb-Douglas production function
A)should hire more
A)the
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents