Consider a simple economy whose only industry is weaving. In this industry, productivity- the amount of goods and services a worker can produce per hour- is measured by the number of garments one weaver makes per hour.

In the following table, match each example to the productivity determinant it represents.

Examples Human Capital per Worker Natural Resources per Worker Physical Capital per Worker Technological Knowledge
The grasslands supporting the sheep whose wool is used for weaving
A special technique that workers can use to create stronger textitles
The accumulated weaving experience of the workforce
The icoms used to weave the textiles

The monthly demand equation for an electric utility company is estimated to be p equals 60 minus left parenthesis 10 superscript negative 5 baseline right parenthesis x, where p is measured in dollars and x is measured in thousands of killowatt-hours. the utility has fixed costs of $3 comma 000 comma 000 per month and variable costs of $32 per 1000 kilowatt-hours of electricity generated, so the cost function is upper c left parenthesis x right parenthesis equals 3 times 10 superscript 6 baseline plus 32 x. (a) find the value of x and the corresponding price for 1000 kilowatt-hours that maximize the utility's profit. (b) suppose that the rising fuel costs increase the utility's variable costs from $32 to $38, so its new cost function is upper c 1 left parenthesis x right parenthesis equals 3 times 10 superscript 6 baseline plus 38 x. should the utility pass all this increase of $6 per thousand kilowatt-hours on to the consumers?