Answer:
I. If labor and capital are perfect substitutes in production, the isoquant is a straight, downward-sloping line.
II. If a company needs to use inputs in fixed proportion such that the capital to labor ratio is always 2, the firm's isoquants are L-shaped.
Explanation:
Perfectly substittuable goods have straight downward sloping ICs, and have corner solutions
.
Complementary goods (used in fixed proportions) are L shaped always
, In case of min(x,y) function, the answer is the value of x or y which ever is minimum and not their sum.
Therefore, Only statements I and II are true.
Answer:
Explanation:
In order to find the highest amount david can pay or in other words the present value of the investment we would have to discount the cash flows
3000/1.08+3000/1.08^2+3000/1.08^3+3000/1.08^4+3000/1.08^5=11,978
Answer:
15%
Explanation:
The formula and the calculation of the price elasticity of supply are presented below:
Price elasticity of supply = (Percentage change in quantity supplied ÷ percentage change in price)
where,
Price elasticity of supply = 2
And, the percentage change in quantity supplied is 30%
So, the percentage change in price is
= 30% ÷ 2
= 15%
Answer:
D, product-communication adaptation
Explanation:
Product adaptation can be defined as the process of modifying a product to make it useful for a variety of users.
Communication adaptation can also be defined as the change in a product's communication as a result of a change in product strategy.
Product-communication adaptation can be defined as the modification of a product for a variety of users but ensuring that the marketing of the product is through standard communication channels.
In the case of Campbell adapted his product to look like M'm M'm Good product but ensured that he used a standard communication channel (ads) to market his product.
Cheers.
