ECN 001A Midterm: ECN 001A, Term Test 2
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ECN 001A Full Course Notes
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Document Summary
Changes in supply and demand an increase in demand. Profit - total revenue received from costs. Total revenue equals the number of units sold by price per unit. Labor market - market in which households look for jobs and firms look for employers. Cost of labor = wage rate times number of workers. Cost of capital - cost of all things that are needed for production of goods. Leopold operates a business where he sells laptops, the price of a laptop is and the production amount is 2000 per year. He hires 10 workers and pays them a wage rate of a year. Leopold operates 2 assembly lines to produce the laptops, which cost him. To install them, he had taken out a 20 year loan from the local bank and, for the next 20 years, he has to pay back ,000 of interest to the bank each year.
