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A firm uses capital (K) and labor (L) to produce output y. The production function is given by y = k^0.5 * L^0.5 . Both the wage of labor and the cost of using capital are equal to 1.
a) Compute the technical rate of substitution. Give a brief interpretation.
b) The firm minimizes the cost of production for any output level y. Give the two conditions that have to be satisfied for a cost minimum.
c) Show that the cost function for this firm is given by c( y) = 2y.
How cutting offshore outsourcing and imported durable goods will affect the domestic investment, domestic interest rate, NCO, exchange rate
At which rate will there be an excess supply of money? What does this mean? Describe in detail the adjustment process in the money market when there is an excess demand for money.
Joe runs the Service Division for a car dealership. The overall dealership has profit of $10 million on sales of $100 million and costs of $90 million.
suppose you have just been appointed to a high level position in the economic analysis unit of the state department.
What specific standard is applied to a firm whose only contact with a forum state is through its Internet site? If you had an eBusiness, what could you do in order to limit your liability to suit in multiple jurisdictions?
What is the goal? (The purpose for this money ultimately), What is your time horizon? (When will you need to access these funds)
ConsiderTable 632 in the 2008 U.S. Statistical Abstract.
Determine the equilibrium prices and market shares. What is the impact of Esquires expansion on Starbucks profits? Explain your answer.
ECO202 – Microeconomics - Assignment: Pay Discrimination - Prepare a list of explanations for the pay differential based on source
Suppose in Singapore the velocity of money is constant, real GDP grows by 7% per year, the stock on money grows by 10% per year, and the nominal interest rate.
A lathe costs $56,000 and is expected to result in net cash inflows of $20,000 at the end of each year for three years and then have a market value of $10,000.
What is the difference between the natural rate of unemployment and cyclical unemployment? How are these related to structural and frictional unemployment?
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