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Suppose a firm uses 2 inputs to produce one output. Can you derive an optimality condition for conditional factor demand for the first input if the second factor is fixed in the short run? How does it look like?
Consider the case of a regulator and a single polluter. Suppose the regulator knows the marginal damage from pollution but is unsure about the firms marginal savings from emitting. The regulator asks the firm to reveal its marginal savings from em..
Econ 304 Spring 2013 - Compute a consumer price index for apples for each year. Assume that year 1 is the base year in which the consumer basket is fixed. How does your index change from year 1 to year 2?
Its president administers schools, for example, a college of business and a college of liberal arts. The college of business each of these in turn has a dean who is responsible for faculty departments such as economics and finance.
Assume there are two firms, A and B, buying labor in a market. They each have a constant level of VMP = 15. They face an upward sloping supply curve, W = 2L, where L is the sum of the supply of labor purchased by firm A, LA, and by firm B, LB.
Explain how the Central Bank can set the nominal interest rate in the money market. In addition, explain how it can use expansionary monetary policy to boost GDP if the economy is in a recession.
Assume that an earthquake destroys part of capital stock. Forecast what will happen to total production, the real return to capital, and real wage.
In each equation, Q denotes the number of travelers of each type who stay at the hotel each day, and P denotes the price of one room per day. The marginal cost of serving an additional traveler of either type is $20 per traveler per day.
Determine the economic implications for the United States of the increase of China and India as significant economic powers.
Explain why a short run average cost curve only touches the long run average cost curve at one point on the long run average curve. define clearly the concept of returns to scale.
Suppose there is an increase in risk aversion by wealth holders in the sense that, other things equal, they want to hold more of their wealth in money (bank deposits) and less in securities.
The fiscal policy makers of Leverett want to adjust taxes to maintain the exchange rate at its previous level. What should they do If they do this, what are the overall effects on saving, investment, net exports, and the interest rate
Increased use of vehicle identification numbers on automobiles was encouraged by insurance companies because of their impact on the market for stolen cars. Which aspect of the market would this impact The demand side, the supply side, or both Wh..
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