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A certain area has 7500 workers who are willing to work at any salary. The area has two places of employment, A and B.
At A, the value of the marginal production of the workers isw = 1800-0.1L
At B, it isw = 1800-0.2L
where L is the number of workers and w is their salary per day. Which company earns more money?
Should Airway Express continue to provide the flight between Los Angeles and New York at all. If Airway Express decides not to fly, it still has to pay the fixed costs of $3,000 per day. The evening with the return flight the next afternoon is cou..
Q= -3 + 8.5L - 2L^2 Q is toys per hour, L is workers employed per hour. Charges $20 per toy. Workers paid $10 hour. Firm has $50 fixed costs per hour. What is marginal product labor (MPL) What is marginal revenue product
A Man is planning to retire in 20 years. He can deposit money for his retirement at 6% compounded monthly. It is estimated that the future general inflation rate will be 5% compounded annually. What deposit must be made..
Hotelling'sModel (RG): Consider a population uniformly distributed along an ideological spectrum [0, 1]. Each of two candidates chooses (simultaneously) a platform represented by an ideology value x ? [0, 1]. The voters observe the platforms.
You are considering buying a new car with a part of your student loan dollars as you really do not need the extra cash now. You have two alternatives with the following cost structures. Speedy Initial cost = $20,000Annual operating cost = $8,000 Us..
In 2003, the market price for a 3,000 square foot home in South Tampa, Florida was $350,000 and 358 new homes were built. In 2004, the market price for a 3,000 square foot home in South Tampa, Florida increased to $385,000 and, holding all else eq..
If my income increases by 10%, then quantity of public transportation demanded drops by 5%. I can say that income elasticity of my demand for public transportation is negative and that public transportation is a normal good.
Duff Inc. paid a 2.06 dollar dividend today. If the dividend is expected to grow at a constant 4 percent rate and the required rate of return is 7 percent, what would you expect Duff's stock price to be 3 years from now
What is the multiplier? How is it calculated? Why is the multiplier related only to consumption spending?
Suppose that the current market price of VCRs is $300, that average consumer disposable income is $30,000, and that the price of DVD players (a substitute for VCRs) is $500. Under these conditions annual U.S. demand for VCRs is 5 million per year.
Newton exports all their products outside the city and Garfield only sells their products within the city. Newton experiences growth, so it hires 100 more workers, all of whom come to reside in city A.
The value of a successful project is $420,000; the probabilities of success are 1/2 with good supervision and 1/4 without. The manager is risk-neutral, not risk-averse as in the text, so his expected utility equals his expected income minus his di..
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