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Suppose that a firm had a production function given by: q=L^0.25*K^0.75. The wage rate (w) is $4 and the rental rate (r) is $20. Calculate the amount of labor the firm would hire when it produces 450 units of output in a cost-minimizing way
Suppose that in a week the price of Greek yogurt increases from $5.00/lb to $5.25/lb. At the same time, the quantity of Greek yogurt supplied increases from 100,000 lbs to 125,000 lbs. What is the price elasticity of supply for Greek yogurt?
Snack food venders and beer distributors earn some monopoly profits in their local markets but see them slowly erode from various new substitutes.
What is the relationship between net income and cashflow from operating, investing, and financing activities for a company.
What is the lesson learned from the stories about the accuracy of Wikipedia?
An increase in the minimum wage
It doesn't want to rise tax but instead wants to print $100 currency to balance its budget. What would be the long run result?
Illustrate what can you say about the change in equilibrium price and quantity.
For each of the following statements, specify whether a Keynesian, a monetarist, or a classical economist is most likely to support it, and explain in 1-2 sentences why. “During a recession, government spending should be minimized. The Federal Reser..
Johnny is an impoverished college student who works at a bakery full time while attending school. After spending money on rent, tuition, and books, he only has $80/month left over to spend on food. The good thing about his job is that he gets to take..
Consider the economy whose data appear in the table below. Working-age population 100,000 Labor force 80,000 Unemployed 12,000 Instructions: The unemployment rate is %. The labor-force participation rate is %.
Suppose in the first five years of working for ABC Corporation Emily earns $50,000 a year after taxes, but ABC makes no yearly contribution toward a retirement plan for her. However, after five years ABC offers Emily a choice of receiving a $5,000 af..
You have just graduated and moved to this city; as a new MBA and an entrepreneur, you are considering entering the market for this product.
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