Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN: 9781305506725
Author: James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher: Cengage Learning
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Chapter 21, Problem 10CQ
To determine
The role of profit in an economy.
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explain briefly 3 significant business objectives. analyse the extent to which the use of labour contributes to the achievement of the business objectives
Suppose the productivity of capital and labor are as shown in the table below. The output of these resources sells in a purely
competitive market for $1 per unit. Both capital and labor are hired under purely competitive conditions at $3 and $1, respectively.
Units of
MP of
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MP of
Capital
Сapital
Labor
Labor
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1
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2
18
8
3
15
7
4
4
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6.
3
1
7
7
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0.5
8
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How do economies of scale affect business models in manufacturing industries, and how can smaller companies compete with larger, more established firms?
Chapter 21 Solutions
Economics: Private and Public Choice (MindTap Course List)
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