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Suppose a firm’s technology is represented by the Cobb-Douglas production function F(L, K) = 5LK. The wage rate is $50 and the rental rate of capital is $10. What is the least-cost combination to produce 100 units of output?
The vertical long run AS curve compatible with classical economics implies that AD only determines the price level
What firms need to do in order to bring in the most talented people and make the fullest possible use of their abilities.
If David's only illness this year results in an appendectomy, explain how many days will he choose to stay in the hospital
Some retailers must contend with excessive customer returns of purchased items. For example, a person may purchase an expensive item at a clothing store; wear it to a fancy event, then return the item. To what extent is the problem of excessive custo..
Winston Churchill once thought that democracy is the nastiest form of government except for all others.
AH and PPP are price takers and provide a basic Groom and Check service for $40 per pet (dog). AH has fixed costs of $8,000 less than PPP and average variable cost of $33, which is 10% more than PPP. Calculate the cost functions of both firms. Calcul..
Suppose the U.S. and Mexico both produce 2 goods, tablets and cereal, using 2 inputs, capital (K) and labor (L). The production of tablets is capital-intensive, and that of cereal is labor-intensive. The U.S. is a capital-abundant country, and Mexico..
q. suppose there are two consumers a and b. the utility functions of each consumer are given byuaxy xyubx y 2x ythe
Illustrate what is happening to the U.S. exchange rate when the U.S. nominal exchange rate is unchanged, but prices rise faster abroad in the United States than abroad.
what is the wage, quantity hired, wage plus employer taxes and wage minus employee taxes if employees pay a $6 tax?
In 1970, Lyle bought a hand calculator for $200. The calculator was more accurate in its four functions of addition, subtraction, multiplication, and division than was Lyle’s $35 slide rule. In 1990, Lyle could not buy a calculator, which could only ..
What type of compensation policy would you expect to observe in an industry with rapidly changing technology? Explain. Suppose you are the owner-operator of a gas station in a small town. Over the past 20 years, you and your rival successfully kept p..
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