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Q1. The Australian Medical Association (AMA) once called for an immediate 20% cut in medical student intakes to halt what they alleged was a growing oversupply of doctors. "It is a tragic waste of human and economic resources to spend six years training men and women for jobs that will not be needed" said the AMA President. Do you agree with the AMA? Why or why not?Q2. According to the chief engineer at the Zodiac Company, Q=ALaKb, where Q is the output rate, L is the rate of labor input, and K is the rate of capital input. Statistical analysis indicates that a=0.8 and b=0.3. The firm's owner claims the plant has increasing returns to scale.
a. Is the owner correct?b. If b were 0.2 rather than 0.3, would she be correct?c. Does output per unit of labor depend only on a and b? Why or why not?
Imagine that you were the president of an emerging country that is trying to reduce the number of its imports
Compare and contrast the Nielsen rating or a given episode on a TV series with the comments posted about the same show on TOP.
Why do monopolistic competitors have a tendency to advertise much more than perfectly competitive firms?
If each test provides$6 net marginal revenue before labor and capital costs, is expansion advisable? Show all your work and explain your answer well.
The cost curves of the firm. In terms of economies of scale, why would a firm sometimes want to expand output and sometimes not want to expand output.
Bud Owen operates Bud's Package Store in a small college town. Bud sells six packs for off-premises consumption.
Suppose that the only input used in the generation of solar energy is sunlight
How much income gets you into the top quartile or quintile. Discuss the issues of regressive, proportional, and progressive taxation.
What must she/he expect to happen to short term interest rates over the coming year.
Imagine you are a manager for the good or service used above. From the results of the regression equation, suggest strategies to either maintain demand.
Suppose the point of tangency that characterizes long-run equilibrium for a monopolistically competitive firm occurs at Q1 units of output.
Assume an endogenous growth model with labour augmenting technology.
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