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Dough daddy is contemplating the input mix he is currently using to make doughnuts in his doughnut shop. Keeping the same number of workers, if he were to upgrade his deep-fat fryer from the current medium size to a large-sized one, daily output of doughnuts would increase by 200 doughnuts. The additional daily cost of leasing the large rather than the medium fryer would be $25. Alternatively, Doughdaddy could increase output by 400 doughnuts per day by adding another worker to the production process. Each additional worker-day costs him $80. Is Doughdaddy using the cost-minimizing mix of capital and labor to produce doughnuts? If he wants to increase output, should he use relatively more capital or relatively more labor?
Assume x and y are the only two goods a person consumes. If after a rise in p x , the quantity demanded of y decreases, one could say
Analyze any comparative advantages and international trade opportunities. Explain the factors that will affect demand, supply, and prices of that product.
The monetary policy (increases/decreases) the economies demand for goods and services, leading to (lower/higher) product prices. In the short run, the change in prices induces firms to produce (fewer/more) goods and services. This, in turn, leads ..
what one thing about the experience made you feel good about it? Why? In reflecting on the unpleasant experience, what one thing about the experience made you feel uncomfortable about it? Why? Consider what you do for work on a day-to-day basis. G..
Evaluate the role and the effectiveness of the Federal Reserve in stabilizing the current economy - Determine which economic indicators the Federal Reserve should analyze so it can better stabilize this particular economy.
Provide the cyclical nature of government tax revenues and spending, how would the resulting budget deficit or surplus vary over the business cycle.
Determine what activities should we look for in order to estimate if an entrenched management is taking actions that would harm us as shareholders?
The demand for haircut at Andy's Hair Salon has been estimated as follows: Demand Curve (D1) P = 15 - 0.15 Qd Where Q = the number of haircuts per week, and P = the price per haircut. Andy is considering raising his price above the current price of $..
Define what is The pattern of behavior that occurs when consumers react to a change in price of the product by buying a substitute product that offers a better relative value.
Focusing on how Gross Domestic Product (GDP) is measured through its various components, explain in detail how each of these phases of the 'mining boom' impacts on GDP
Set up the problem of the firm. Solve for the supplies of goods (y1; y2) and demands for labor (N1, N2). Show that the profits of the firm in each period, π1 and π2, have to equal 0 in equilibrium. Define the competitive equilibrium
How should emerging market economies respond to capital outflows (if they should at all) with monetary, fiscal and exchange rate policies
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