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Use the firm's isoquant-isocost diagram and the firm's marginal cost curve to explain and illustrate the output and substitution effects of a decrease in the price of labor. Use your results to prove that the firm's long-run demand curve for labor must slope downward. What will happen to the amount of capital employed by the firm when the price of labor decreases? Use output and substitution effects to explain the change in the amount of capital employed.
What is real mortgage interest rate in 2001, 2002, 2003 and 2004? What are the values in 2000 dollars of the Nancy's monthly mortgage payments in the year of 2001, 2002, 2003, and 2004?
Draw a bowed-out production possibilities curve (PPC or PPF) with an aggregate measure of medical services, Q, on the horizontal axis and an aggregate measure of all other goods (and services), Z, on the vertical axis.
Consider a product with a supply function Q 1 = β 0 + β 1 + u 1, a demand function Q d i =y 0 +u i d . Show that P i and u s d are correlated.
According to economist, if savings equal $5 trillion and spending equals $100 trillion, what will investment equal?
In a perfect capital market, advices for a corporate financial manager on making capital structure decisions.
Discuss the impact on wages, employment in the industry, and the economic welfare of the following input market structures. In which case will the deadweight loss be the smallest?
What is autarky price and quantity equilibrium for both home and foreign? What is the open trade price and volume under free trade.
Discuss how a change in price affects total expenditure by filling in each cell with resulting change in total expenditure.
The kinked-demand schedule that an oligopolist believes confronts the firm is given in the table below. Compute the oligopolist's total revenue at each of the nine prices
President Obama pushed his massive fiscal stimulus package of $787 through the Congress and later passed by the House and Senate, whose centerpiece was spending most of this stimulus funds
An increase in input prices for rice production; and an improvement in rice production technology. Use diagrams to analyze the effects of these changes on equilibrium price and quantity.
You have the following information concerning the production of wheat and cloth in the United States and the United Kingdom:
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