It was noted in class that a production function identifies the maximum amount of output that can be obtained from a given amount of input. that is, workers are assumed not to shirk. if workers were to shirk, then: i. the level of output per period will be less than the level of output if workers do not shirk ii. mpl and apl will be greater than mpl and apl if workers do not shirk iii. the total labor costs required to produce a given level of output will be greater than if workers do not shirk but total fixed costs will be unaffected i

Demand increases by less than supply increases. as a result, (a) equilibrium price will decline and equilibrium quantity will rise. (b) both equilibrium price and quantity will decline. (c) both equilibrium price and quantity will rise

Quick computing currently sells 12 million computer chips each year at a price of $19 per chip. it is about to introduce a new chip, and it forecasts annual sales of 22 million of these improved chips at a price of $24 each. however, demand for the old chip will decrease, and sales of the old chip are expected to fall to 6 million per year. the old chips cost $10 each to manufacture, and the new ones will cost $14 each. what is the proper cash flow to use to evaluate the present value of the introduction of the new chip? (enter your answer in millions.)

Which of the following situations is most likely to change a buyer's market into a seller's market? a. a natural disaster that drives away a lot of the population. b. the price of building materials suddenly going up. c. the government buys up a lot of houses to build a new freeway. d. a factory laying off a lot of workers in the area.