Felix runs a surfing school on the North Shore of Oahu. He has two inputs: surfboards, which he rents from a local shop for $10 per day, and surfing instructors, whom he hires for $40 per day. Felix has figured out that the marginal physical product (MPP) of the last instructor hired is 4 lessons, and the MPP of the last board used is 3 lessons.

Which of the following statements is correct?

A.) Felix could lower his costs without reducing his output if he employed more instructors and used fewer surfboards.

B.)Any of these answers may be right, depending on the price of a lesson.

C.) Felix could lower his costs without reducing his output if he employed fewer instructors and used more surfboards.

D.) Felix currently employs a cost-minimizing combination of surfboards and instructors.

What would happen to the equilibrium price and quantity of lattés if the cost to produce steamed milk

Profits from using currency options and futures.on july 2, the two-month futures rate of the mexican peso contained a 2 percent discount (unannualized). there was a call option on pesos with an exercise price that was equal to the spot rate. there was also a put option on pesos with an exercise price equal to the spot rate. the premium on each of these options was 3 percent of the spot rate at that time. on september 2, the option expired. go to the oanda.com website (or any site that has foreign exchange rate quotations) and determine the direct quote of the mexican peso. you exercised the option on this date if it was feasible to do so. a. what was your net profit per unit if you had purchased the call option? b. what was your net profit per unit if you had purchased the put option? c. what was your net profit per unit if you had purchased a futures contract on july 2 that had a settlement date of september 2? d. what was your net profit per unit if you sold a futures contract on july 2 that had a settlement date of september 2

What would not cause duff beer’s production possibilities curve to expand in the short run? a. improved manufacturing technology b. additional resources c. increased demand