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Suppose the marginal expense of hiring another worker is $150 and the marginal expense of hiring current workers for an extra hour is $10. The added output associated with an added worker, holding both capital and average hours per worker constant, is 120. The added output generated by increasing average hours per worker, holding capital and the number of employees constant, is 7. If the firm is interested in maximizing profits, What should it do?
Compute the expected value (revenue) from each project. Compute the coefficient of variation of each project, and find out which project should the company choose. Compute the variance and standard deviation of expected value from each project.
Identify trends or other patterns in inflation within the an economy of your choice over the last five years using quarterly data from the Central Bank or other Government based Statistical agency websites as a source.
Exchange and markets, Demand supply and market equilibrium
Engineers at national research laboratory built a prototype automobile which could be driven 180 miles on single gallon of unleaded gasoline. They estimated that in the mass production the care would cost 40k for each unit to build.
In each of the cases listed below determine what this consumer needs to do (in terms of purchasing X and Y) to maximizes their utility.
Explain how an individual's Demand curve for medical care will change (i.e., shift) if the following things happen (consider each change individually, holding all other possible influences constant.
How income may change savings behavior
What are those key objectives and what are the key tools the Fed plans to use to achieve those objectives?
Finding the short run and long run profit maximizing price - quantity and number of firms in industry.
Find out the average total cost and average variable cost as a function of the level of output. Assuming the firm has the same cost curves in the long-run for q>0 and C (0) =0, how much will it produce in the long-run?
At what price will she buy four visits? Eight visits? What is the elasticity of between a price of $5 and $6 per visit? Between a price of $29 and $31?
Explain why a monopolist will never set a price (and produce the corresponding output) at which the demand is price-inelastic.
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