Re: JNU 2006-2002 Doubts

Posted by bhavya jain on May 07, 2014; 7:05am
URL: http://discussion-forum.276.s1.nabble.com/JNU-2006-2002-Doubts-tp7588757p7588783.html

what wud be the answer to these questions-
1)  In an economy where capital and labour are the only factors of production
For a particular period
capital stock-1000,  output capital ratio-0.4,employment-200,wage rate-1..calculate the rate of profit
a. 5%
b.10%
c.20 %
d.not enough information to calculate the rate of profit
is it (d)

2) In a particular mkt, (p', q') is a monopolist's profit max price-qty choice. At (p', q'), the absolute value of price elasticity of mkt dd is
a) 0
b) 1
c) b/w o & 1
d) >1
will the ans be d) since monopolist never operate on the inelastic portion of dd curve.....