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A firm's production function is given by Y = 5 L K and faces costs for inputs of wL and wK.
a. Derive the firm's demand for labor and capital.
b. Derive the firm's cost function, C(wL;wK; Y ). Simplify it as much as possible - one term.
c. Derive the firm's supply function.
d. If wL increases by 50% by what percentage does cost and supply change?
Explain how high does the stock price have to rise for the option strategy to be more profitable.
Assume that the position of a contry's long-run aggregate supply curve has not changed, but its long-run equilibrium price level has increased.
If a local movie theater sells tickets at different prices (senior citizens versus young people, matinee versus evening prices) is the local movie theater a monopoly What about the concession stand inside the theater
What is the optimal quantity for the monopolist? What is the corre-sponding price
Scores have an average of 1200 with a standard deviation of 60. A sample mean of 36 scores is selected. What is the probability the the sample mean will be larger than 1224?
Suppose real GDP is $10,000 billion and the basic expenditure multiplier is two. If two tax changes are made at the same time:
Banks try to keep their excess reserves at a maximum in order to maximize profits.2. The demand for reserves depends on income and the price level.
Assume that the equation for demand for bread at a small bakery is Qd = 60 - 10Pb + 3Y If Y is 10 and Pf is $1, solve mathematically for equilibrium Q and Pb.
The insurance company informs her that she has two options: (1) she can receive the entire $500,000 in one lump-sum payment or (2) she can receive annual installments of $58,000 for ten years.
Assume the money market for the economy of San Pedro is in equilibrium. a) Using a diagram, graphically illustrate equilibrium in the money market.
Suppose the elasticity of U.S. exports with respect to the real exchange rate is very low
Assume a society manufacture only guns and butter. When it uses all its resources for the production of guns and operates efficiently, it can manufacture 240 guns a year.
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