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A firm's production function is: Q = K1/2 L1/2. Suppose that capital is fixed at 81 units. If the firm can sell its output at a price of $100 per unit, hire labor at $50 a unit, and rent capital at $10 a unit, how many units of labor should the firm hire to maximize profits? Given your answer, what is the level of output that maximizes profits. Lastly, calculate the level of profits at the profit-maximizing level of labor and output given that capital is fixed at 81 units.
Do you think the net effects of trade blocs are good or bad for world trade? Why? How do the efforts of the WTO relate to these trade blocs.
"The Federal Reserve and Monetary Policy" Visit the The Business News and please respond to the following: Part 1 What is the mission and legal mandate of the Federal Reserve System? What policy tools are available to the FED to achieve their mission..
When Kodak leased large photocopiers to businesses, they also bundled a maintenance contract for periodic repairs. Third-party repair firms claimed that Kodak violated antitrust laws because this bundle guaranteed Kodak a monopoly on repairs and excl..
Suppose your consulting firm was hired by a city to determine if it is worth it (from an economic/social optimization perspective) to submit a bid to host the next Summer Olympics. What people/groups should be included in your analysis? Why? Would yo..
Using a correctly labeled graph, show how the monetary policy you identified in B would affect the Argentinian money supply and Argentinian nominal interest rates.
For the following situations determine how the offered changes to supply and demand will affect the market-clearing price and quantity of each good. Your possible answers are “increases”, “decreases”, and “uncertain/not enough information”.
What is the “Learned Hand” formula? Where is it used? Can the formula be used as a criterion to evaluate efficiency?
A shareholders' group, in lodging a protest, claimed that the mean tenure for a chief executive office was at least nine years. A survey of companies reported in the Wall Street Journal found a sample mean tenure time of 7.27 years with a standard de..
The inverse demand in a Cournot dupoly is P=a-b(Q1+Q2) and costs are c1(Q1)=c1Q1,and C2(Q2)=c2Q2. The government has imposed a per unit tax of $t on each unit sold by each firm. The tax revue is ?
The neoclassical consumption model allows consumers to have access to savings. How would our conclusions about consumption in each period change if the consumer could not access markets for savings? For full credit you must support your answer using ..
Given the current condition of the United States economy, do you think United States rule makers would prefer to see the $ increase in value, reject in value or stay at its current value?
On your girls first birthday, you open an account to fund her college education. You deposit $1500 to open the account. Each year, on her birthday, you make another deposit, with each being 10% larger than the previous deposit. The account pays inter..
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