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Suppose the domestic production function is Y=10K0.5L0.5.
We first assume a closed economy. The domestic market has 50 units of labor and 200 units of capital. When oversea capital movement is permitted, 150 units of capital move from home to abroad, until domestic and foreign rental rates are equalized. Please calculate the domestic rental rate r after the capital movement.
A group living in the United States in 2004 consisted of fifteen households with no elderly members. There were five single individuals living separately from each other (less than 65 years old). Their incomes were $7,000, $7,500, $8,000, $9,000, and..
Market size, location, and openness to trade can help explain why some markets are developing faster than others. In your opinion, what trade theories support the recent rise of China and India on the global stage?
A firm sells its product in a perfectly competitive market where other firms charge a price of $80 per unit. The firm’s total costs are C(Q) = 50 + 12Q + 2Q2. How much output should the firm produce in the short run? What price should the firm charge..
Consider the iron ore production industry, and assume that there are just two producers, FM and BHP. Initially assume that both firms are identical in terms of their production costs. If the two firms can cooperate, what should they do in order to ma..
1. Growth accounting shows that technological progress is an important source of economic growth.
Would the Powhatans have accepted wages to labor in the fields of plantation owners? Does that constitute a historical force?
Suppose that a monopolistically competitive restaurant is currently serving 280 meals per day (the output where MR = MC). At that output level, ATC per meal is $10 and consumers are willing to pay $12 per meal. What is the size of this firm’s profit ..
1. Describe how emotional intelligence and understanding personality types are important for developing relationships.
Recent macroeconomic event that affected the industry/company and, Australia - description of your company and the industry your company
Suppose that for a firm that digs ditches for laying cable or pipeline, backhoes and backhoe operators are pure complements in production, being used on a one-for-one basis. Draw the isoquants (on a graph with backhoe, “K”, and backhoe operators, “E”..
You have been given the responsibility of supervising 12 MBA summer interns, hired specifically to conduct internal research for your company. You are concerned that they do not fully understand the importance of ensuring adherence to the principles ..
Assume that a 1- year discount bond (bond A) with a face value of $1,000 is currently trading at PV = $938.97, and another 2-year discount bond (bond B) with identical risk features and face value is currently trading at $834.01. Please calculate the..
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