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A firm has the production function: q= 10L0.5 K0.5 .The price of labour is w= 10 and the price of capital is r = 20.
a.) Demonstrate that this function has constant returns to scale (using the definition of constant returns to scale).
Beasley Worldwide Data Destruction (BWDD) purchases a new computing center for $200 million. They estimate a life of 5 years and a salvage value of $40 million. BDWW uses MACRS depreciation in the five year category. They also estimate revenue at $10..
A firm has $2,100,000 in sales, a Lerner index of 0.6, and a marginal cost of $45, and competes against 800 other firms in its relevant market. What price does this firm charge its customers? what factor does this firm mark up its price over marginal..
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Which of the following must be true in an economy with a government but with no foreign trade?
Reflect on the long term implications of high unemployment among the younger generations in Spain and Greece. In your opinion, does membership in the European Union increase the chance for brain drain?
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What do we know about the proportion of peanut butter to jam held by Bob in any equilibrium? If Adam held all of the peanut butter in the initial endowment, is it possible that he end up with nothing in the equilibrium?
What evidence have you discovered that points to the Classical, Keynesian, and Monetarist theories being debated today? What is supply-side economics? Does it oppose the Classical, Keynesian, or Monetarist theory? How does supply-side economics affec..
Explain each and differentiate between these three types of securities, a Stock, Mutual Fund, and Exchange Traded Fund (ETF)
"Price" in the statement of the Law of Supply refers to: A decrease in demand and an increase in supply will: When producers (say, of roads) are not able to make all consumers pay for enjoying their product (i.e., the roads), they tend to see a:
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