1. If the Total Cost of production isC= $540, the number of units of capital isK= 10, the rental price of capital isr= $40, and the units of labor isL= 20, then what must be the wage rate,w(assuming thatLandKare the only two inputs to production)?

Group of answer choices

None of the other options.

$8.

$6.

$7.

$5.

2.Suppose a firm is currently using capital (K) and labor (L) such that the marginal product of capital isMPK= 40 and the marginal product of labor isMPL= 18. If the rental price of capital isr= $20 and the wage rate isw= $10, then this firm

Group of answer choices

is minimizing cost of its current level of production.

can reduce the cost of its current level of output by using a bit more L and a bit more K.

can reduce the cost of its current level of output by using a bit more K and a bit less L (in such a way to keep output constant).

must be maximizing its profit.

can reduce the cost of its current level of output by using a bit more L and a bit less K (in such a way to keep output constant).

3.suppose countryAis in autarkic equilibrium.The priceXisPX= $30 and the labor input requirement forXisaLX= 4 hours.What is the hourly wage rate,w, in countryA?

Group of answer choices

$10

None of the other options.

$17

$33

$7.50

4.Country A is in autarkic equilibrium. The labor input requirement for goodXisaLX= 1/3 hours.The hourly wage in country A iswA= $15?What is the price of goodX?

Group of answer choices

None of the other options.

$5.

Approximately $15.67.

$10.

$45.

5.Which of the following gives the range in which the exchange rate can 'lie' and still have trade according to comparative advantage? (Numbers are rounded to the nearest second decimal place if needed.)

Group of answer choices

0.8 < e < 1.4.

0.93 < e < 1.75.

0.7 < e < 2.

0.75 < e < 1.5.

None of the other options.

6.Go back to the exchange rate of= 1, and letWE= 1 (as in the original case). What range canW(Pt) lie and still have trade according to comparative advantage? (Numbers are rounded to the nearest second decimal place if needed.)

Group of answer choices

1.33 < W(Pt) < 2.5.

0.7 < W(Pt) < 2.

0.4 < W(Pt) < 0.75.

None of the other options.

0.93 < W(Pt) < 1.75.