Practice Quiz6

Principles of Macroeconomics

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Econ 101: Principles of Microeconomics NAME: Korinna K. Hansen Disc. Section: Practice Quiz 6 A firm can produce different amounts of orange juice with three different production technologies, with labor and capital requirements as follows: Technology A Technology B Technology C Daily output K L K L K L 100 3 7 4 5 5 4 150 3 10 4 7 5 5 200 4 11 5 8 6 6 (3.5 points) If this firm is located in a high-wage country, where the capital price is $100 per unit per day and labor price is $80 per worker per day, for each level of output which technology
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Unformatted text preview: is cheapest? (3.5 points) If this firm is located in a low-wage country, where the capital price is $100 per unit per day and labor price is only $40 per worker per day, for each level of output which technology is cheapest? (3 points) Now assume that the firm moves from the high-wage to a low-wage country and that its level of output remains constant at 200 units of orange juice per day. How will its total employment change?...
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This homework help was uploaded on 02/01/2008 for the course ECON 101 taught by Professor Hansen during the Spring '07 term at Wisconsin.

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