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Q1. Why does a profit-maximizing firm hire workers up to the point where the wage equals the value of marginal product? Show that this condition is identical to the one that requires a profit-maximizing firm to produce the level of output where the price of the output equals the marginal cost of production.
Q2. A physician's office expenses increase 10 percent so she decides to raise the price of office visits by that much. Assuming the demand curve for office visits does not shift, what will happen to the total number of office visits and practice revenues?
Now suppose the factory develops an innovation that allows it to produce a shirt for the equivalent of 1 loaf of bread. What is the new radius of the factory's market area.
By what percentage would GDP be boosted if the value of the services of stay-at-home spouses were included in GDP
The Coca-Cola Company has 40% of the cola market. Determine the probability that a sample proportion
How do the GDP per capita change after accounting for price indices. Why is it important to use price index adjustments.
Government encourage a decision to expand? How would it affect the reputation of the business?
Analyze the impact of this floor on price, quantity demanded and supplied. Would this price floor create a surplus or deficit of this product in the market?
Describe a skimming price and a penetration price, and advise them whether they should charge a skimming price or a penetration price, with supportive reasoning for and against each pricing alternative.
Distinguish between the resources market and the product market in the circular flow model.
Calculate Marginal Revenue from demand if the marginal propensity to save is 0.05, how large is the multiplier.
Calculate the constant debt-GDP ratio that the country can achieve if the country runs a primary budget deficit of 3%. Is this debt-GDP ratio stable.
Consider a mutual fund with $720 million in assets at the start of the year and with 10 million shares outstanding.
In long run, what would you expect to happen to the price of steelin U.S. and Germany. What would be the price differential.
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