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Consider a firm that employs capital k and labor l to produce books. Its production function is given by f(k; l) = k^1/2 l^1/2 . Let the prices for capital and labor be wk and wl, respectively.
Does this production function exhibit constant, decreasing, or increasing returns to scale? Diminishing marginal products? Diminishing technical rate of substitution?
This assignment is designed to teach you how to research a company of your choice. You will be performing an analysis of the financial statements of a publicly traded company.
a. All your costs are fixed and your goal is to maximize the total revenue received from selling advertising. Suppose that the expected number of viewers is one million people. What price should you charge? How many minutes of advertising will ..
Calculate the firm's profit or loss. Is the firm making a profit or a loss and explain the Short Run Shut Down Rule. Should this firm shut down? Please explain.
What are the financial markets and what purposes do they serve and what are financial intermediaries? How do these intermediaries function in the economy?
The labor demand and supply curves are respectively: Ld = a+b·w and Ls = c+d·w, where a, b, c, and d are parameters of the model, w is the wage, Ld and Ls denote labor demand and supply, respectively.A. What are the values of the parameters c and d t..
If the ABC company owns the exclusive rights to mine land in Afghanistan for Lapis Lazuli, a rare stone used in jewelry which is found only in Afghanistan, the company benefits from a barrier to entry.
If the price of gasoline doubled, how would consumption of (a) cars, (b) public transportation, and (c) in-theatre movies be affected? How quickly would these adjustments be made?
The SEC regulations require u.s. corporations to publish operating results on a quarterly basis. How does this short term time frame impact long term profit maximization?
Imagine that you are the manager of a gas station and your goal is to maximize profits. According to your past experience, the elasticity of demand by Texans for a car wash is -4,
In each of the following scenarios, begin with an initial equilibrium. Then, sketch what is happening in the market, and determine the directions of change.
Fiscal measures may help a recessionary condition in the economy. Do you think we are moving towards a recessionary lag under the new administration?
A more serious problem with input-based pay systems (e.g., a wage her hour), relative to an output--based system, is:
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