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Q1. Consider a firm using a single variable input, labor and a single fixed input, capital. Please explain what will happen to total product, average product and marginal product curves when a) Capital is increased, and then b) labor is increased. Assume a) and b) occur independently.
Q2. Suppose the price of gasoline at the pump is $1 per gallon and that 1 million gallons are sold per month. A politician proposes to add a 10-cent tax to the price of gallon of gasoline. She says the tax will generate $100,000 tax revenues per month. What assumption is she making? Explain?
They could each decide to work a few extra hours on Saturday and earn more income. But they choose to play tennis or to relax around the house.
Bud has very limited store space and has decided to limit his product line to one brand of beer, choosing to forego the snack food lines that normally accompany his business.
Can you think of circumstances in which each industry would exhibit the same capital-labor ratio in both countries.
Should the airline replace its night flight from LA with a morning flight as well as should the airline remain in business.
What must the CFO expect about the Australian Dollar/US$ exchange rate 1 year from now if she chooses to invest in the US $ CD's instead of the Australian CD's.
Old Economy Traders opened an account to short sell 1,300 shares of Internet Dreams at $46 per share
If the government imposes a tax on the production of cars, which of the following will occur in the market for cars.
Does the aggregate demand-aggregate supply model support Bernanke's thesis.
There are two identical firms in this economy with constant marginal costs equal to 1 and no fixed costs. Assume that firms set prices and follow a Bertrand model to do so.
Summarize in words the predictions and limitations of the theoretical framework developed for the first exam: that is the predictions for the effect of capital accumulation.
You are using a sample size of 15 for your charting purposes. Which of the following is the upper control limit D4 factor for the chart.
Why is monitoring and controlling the project cost important for the success of the project.
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