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Need some guidance on how to solve the following:
Assume that a firm's production function Q = K1/2L1/2.
a. Assume that the firm currently employs 200 units of capital and 100 units of labor. Determine the Average Product of Capital, Average Product of Labor, Marginal Product of Capital, and Marginal Product of Labor.
The Macroeconomic Paper tests your ability to apply economic principles to a business decision considering the impact of macroeconomic variables.
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Citrus Speculation and Forecasting, Inc., has been recruited by a private consortium of orange growers to predict what will happen to the price and output of oranges under the conditions below.
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Given the following production possibilities curve: a. Does this production possibilities curve show increasing opportunity costs? Explain. b. What is the opportunity cost of moving from point I to point D? Explain.
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I expect a payment of $104 one year from now. My discount rate is 4%. What is present value of the payment to be recieved? How much if 5%?
A country is always worse off when its currency is weak (falls in value). Is this statement true, false, or uncertain? Explain your answer.
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