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Suppose that a firm's production function is given by q = 20E0.50 .The marginal product of labor is 10/E0.50. The market wage for whites is $15, and the market wage for blacks is $10. The firm sells its product at $6 per unit.
a. How many workers would the firm hire if it does not discriminate?
b. How many workers would the firm hire if it discriminates against blacks with a discrimination coefficient of d = 0.20?
c. How many workers would the firm hire if it discriminates against blacks with a discrimination coefficient of d = 0.60?
Companies collect a wide variety of information about their foreign markets to decide in which countries to conduct business and which market segments in these markets they should target. Out of the three major markets, consumer, industrial, and gove..
An individual was injured while setting off fireworks that he purchased from the ACME Fireworks Company. This individual was a resident of the state of Oregon. He was injured after lighting the fireworks in Oregon. The ACME Fireworks Company was loca..
Evaluate the following assertion: Profit maximization on the part of a monopolist means that the reduction in a sales tax (which it remits to the government) will not lead to a reduction in its prices.
Clearly evalute at least three such factors that in your view should be included in the GDP calculations. Explain and illustrate how they will help to improve the GDP as a tool for measuring the well-being of a nation.
What is the best definition of the basket of goods and services included in the consumer price index?
Explain the Economic Espionage Act of 1996. - What was the impetus for this law, and what penalties does it prescribe?
For five years, an oil drilling company has operated profitably in the state of Alaska (the only place it operates). Last year, the state legislature instituted a flat annual tax of $100,000 on any company extracting oil (or natural gas) in Alaska. H..
Consider a model of Cournot competition as studied in class, with 2 firms and a linear inverse demand function P(Q) = a – Q (where Q = q1 + q2 is the total quantity produced by the two firms and a is a parameter). The firms have different marginal co..
Do you think the attitudes and bargaining behaviors of the participants in collective bargaining negotiations are more or less important in the final outcome than economic conditions and factors? Why?
The June 1997 issue of Management Accounting gave the following rule for predict- ing your current salary if you are a managerial accountant. Take $31,865. Next add $20,811 if you are top management, add $3,604 if you are senior management, or subtra..
Which of the following is not a determinant of the price elasticity of demand?
Suppose you deposit $10,000 in a savings account that earns 8% nominal annual rate for 5 years. The interest will be compounded semi-annually. What are the periodic and the effective annual rates? What is the amount of money in the account at the end..
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