In Year One,capital Stock Was 6,labour Input Was 3,and Output

question 21

Multiple Choice

In year one,capital stock was 6,labour input was 3,and output was 12.In year two,capital was 7,labour was 4,and output was 14.If shares of labour and capital were each 1/2,between the two years,total factor productivity:

• A) increased by 1/12.
• B) increased by 1/18.
• C) decreased by 1/12.
• D) decreased by 1/18.

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Definitions:

Profit-maximizing

Aimed at achieving the highest possible profits through adjusting production levels, pricing strategies, and cost management.

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices during a specified time period.

Price-discriminating Monopolist

A monopolist that charges different prices to different consumers for the same good or service, based on each consumer's willingness or ability to pay.

Market

A place or system in which commercial transactions are conducted, often defined by the exchange of goods and services for money.