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Supposed that the firm producing leather bags has a production function of Q=5K1/3L2/3, where Q stands for quantity produced, K stands for capital and L stands for labor. The marginal product of labor is (10/3)(K/L)1/3 while the marginal product of capital is (5/3)(L/K)2/3.
If taxes were cut by 1 trillion adn the mpc was .8 how much would total spending. Increase in the first year with two spending cycles? Increase over an infinite time perios?
How does the relationship between saving and investment affect the current account balance? What is the connection between the government’s budget deficit and the current account deficit?
Explain the difference between the Industry (external) view and the Resource (internal) view of sustainable competitive advantage. Make sure you explain Porter’s Five Forces model and the resources and capabilities emphasized by the Resource Based Vi..
Suppose that the price level relevant for money demand includes the price of imported goods, which in turn depends on the exchange rate. That is, the money market is described by M/P = L(r, Y ), where P = λPd + (1 − λ)(Pf/e). What is the effect on th..
Lets denote the price of a nonmaturing bond (called a consol) as Pb. The equation that indicates this price is Pb = l/r, where l is the annual income the bond generates and r is the nominal market interest rate. Suppose that the bond promises the hol..
Consider a Bertrand oligopoly consisting of four firms that produce an identical product at a marginal cost of $160.
Three individuals each hold a ticket for a lottery that will pay $100 with probability 0.2 and $10 with probability 0.8. Their utility functions for the monetary amount x may be described as follows: Tom: u(x)=0.002x2+x Jim: u(x)=log10(x) Janet: u(x)..
The 1900 block of Kenyon St NW (my former home) has (approximately) 60 homes. 30 of the households really love streetlights, and each have a demand of QD = 10 − .5P.The other 30 households each have a demand of QD = 5 − .25P. Streetlights have a cons..
Which costs would you take into account in making your decision, fixed costs, variable costs or both? Make sure to explain your analysis in the decision that you have to make.
What would be the production possibility frontiers for Brazil and the United States?
Explain how specifically does this information affect your desire to sign a two-year contract with Toy Yachts R Us.
Which of the following is true about shareholders?
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