If 1 Unit Each of Land and Labor Are Used

question 12

Multiple Choice

If 1 unit each of land and labor are used to make product A (costing a total of $10) , and 1 unit of land and 3 units of labor are used to make product B (costing a total of $22) , then the price of:

• A)land is $6 and the price of labor is $4.
• B)labor is $6 and the price of land is $4.
• C)land is $8 and the price of labor is $2.
• D)each input is $4.
• E)labor is 3 times the price of land, but the exact amount cannot be determined from the above.

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Definitions:

Nash Equilibrium

A concept in game theory where no player can benefit by changing strategies if other players keep theirs unchanged.

Game Theory

The study of mathematical models of strategic interaction among rational decision-makers.

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A period characterized by rapid and profound technological advancements, significantly impacting industries and society.

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The organization and characteristics of a market, determining the level of competition and pricing power, such as monopolistic, oligopolistic, and competitive markets.