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Assume that a company has a budget of $12,000, that the wage rate is $10 per hour, and that the rental rate of capital is $ 100 per hour. If the wage rate increases to $15 per hour and the rental rate of capital rises to $120 per hour, what happens to the producer budget or isocost line? What will happen to the equilibrium level of output because of this change in factor prices? What will happen to the relative usage of labor and capital because of the change in factor prices? Explain.
Three natural resources as well as products that could be traded abroad based on the principles of comparative advantage for India.
Illustrate what do you think would the futures price of 100 shares of your reference company to be delivered to you in one year be right now.
The Hull Petroleum Corporation and Inverted V are retail gasoline franchises that compete in local market to sell gasoline to customer.
Let a company's demand be given by: Q=100-P. Let company's marginal cost be $2 per unit of production. Solve for the firm's marginal revenue equation and optimal output or price combination.
Suppose that Hump Ridge Company produces and sells two products, x and z, and that its total cost is given by-What does λ equal? What does it mean?
Illustrate economic evidence is required to determine whether there are long-run increasing returns to scale in banking.
With lower values for gasoline than a couple of years before will Americans start spending again? If they do, what will they spend the savings on Vacations?
Explain how does the economist's use of the term rent differ from everyday usage.
Illustrate ahat are the general equilibrium values of the real interest rate, price level, consumption, and investment.
Suppose two equally risky shares, Hi and Lo. Hi shares pay a generous dividend and offer low expected capital gains. Lo shares pay low dividends and offer high expected capital gains.
Assume Smith owns and works in a bakery located next to an outdoor cafe owned by Jones. The patrons of the outdoor cafe like the smell that emanates from the bakery.
Exp[lain how does banks use Covered interest arbitrage to protect themselves.
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