There Are 100 Identical Demanders of Product Y, and the Demand

question 3

Multiple Choice

There are 100 identical demanders of product y, and the demand function for each individual is y = 10 - p. The production function for any firm is y = min(z₁,z₂) . If the industry were to produce 700 units of y, then aggregate requirements would be:

• A)z₁ = 350 and z₂ = 350.
• B)z₁ = 500 and z₂ = 500.
• C)z₁ = 700 and z₂ = 0 if w₁ < w₂.
• D)z₁ = 700 and z₂ = 700.

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Definitions:

Statement of Cash Flows

A ledger statement which outlines how modifications in balance sheet accounts and revenue streams influence cash and cash equivalents, with the analysis broken down by operating, investing, and financing operations.

Parentheses

Punctuation marks used in writing to enclose additional information or clarify something without interrupting the main text.

Cash Payments

Transactions that involve the outlay of cash by a business for various purposes, including expenses, acquisitions, or debt repayments.

Cost of Goods Sold

The direct costs attributed to the production of the goods sold by a company, including materials and labor.