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Determine the returns to scale, that is, briefly show whether the following productions exhibit DRS, CRS or IRS.
(a) f(L, K) = L^0.5 K^0.5
(b) f(L, K) = L^0.5 + K^0.5
(c) f(L, K) = L + K
Given today’s fierce global competitive environment, a decrease in mandatory payments by employer to health care companies and providers for overhead health care benefits for workers would lead to an increase in what?
What does the Production Possibilities Frontier show? How can it be a useful tool for explaining the tradeoffs that countries have to make between capital and consumer goods?
How might freeing up dead capital have helped to increase Mongolia’s rate of economic growth? What type of investment would foreign residents undertake if they were to purchase a small fraction of the shares of stocks owned by Mongolia’s residents?
Now suppose that it costs $20 to migrate to the United States. Who will migrate to the United States? What has happened to the skill level of those who elect to migrate? What has happened to the average skill level in the home country? Why?
determined the point price elasticity of demand at P=$3. What is the new point price elasticity if price is raised to P=$4.50? Comment on the change in elasticity
In 1981 Andrew Carnegie asserted that "parents who leave their children enormous wealth generally deaden their children's talents and energies and tempt them to lead less productive lives." Evaluate this statement using the labor-leisure model and ex..
q1. how would you graph an edge worth box for two consumers with the same utility of uxy? also how would you do the
What is the typical cause of positive serial correlation in business data?
Which of the following two bonds are more prices sensitive to changes in interest rate? A par value bond, X, with 6-year-to-maturity and 10% coupon rate.
Consider the market for corn in the United States. Suppose that the mandated percentage of ethanol in gasoline is increased and at the same time a corn blight destroys a significant portion of the corn crop. Using a supply and demand diagram, show wh..
A new office building was constructed five years ago by a consulting engineering firm. At that time the firm obtains a bank loan for $100,000 with a 12% annual interest rate, compounded quarterly. What is balance due to the original mortgage if 20 pa..
As before pleasing the job, you admit a surprise offer from a competitor. Elucidate how much producer surplus have you earned, if you actually earn $2600 during the month.
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