Question

If a county's labor is paid a total of 6 billion, it's capital is paid a total of 2 billion, and profits are zero, what is the level of output?

Accepted Answer

If a countys labor is paid a total of 6 billion, its capital is paid a
total of 2 billion, and profits are zero, then its total cost is TC =
6 + 2 = 8 billion, total revenue is TR = TC = 8 billion. The level of
output is Q = TR/P = 8/P, so we need to know price P to find the level
of output Q.

Question #100770

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