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A firm produces output according to a production function: Q = F(K,L) = min {2K,2L}.
a. How much output is produced when K = 2 and L = 3?
b. If the wage rate is $40 per hour and the rental rate on capital is $20 per hour, what is the cost-minimizing input mix for producing 4 units of output?
c. How does your answer to part b change if the wage rate decreases to $20 per hour but the rental rate on capital remains at $20 per hour?
Which of the following shifts aggregate demand to the right?
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Suppose that classical least squares assumptions apply and the true value of intercept term or is 0 in following model: yi=alpha + beta xi + epsilon i, Now estimate this model with and without an intercept term and compare the variance of the est..
The interest earned is deposited back into the sacinvgs account each month. How much is this account worth 28 years? Answer to the nearest dollar.
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State whether the following decision is a short-run or long-run decision:
. What do you think of Coca-Cola's environmental initiatives? Are they just window dressing , or does the company seem to be sincere in its efforts?
Why might variations in the dollar's value in terms of other currencies cause the trade deficit to move independently from the changes in the government budget deficit.
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