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Question: What happens to the employment decision if an employer is a price-taker in the market for its output but faces an upward-sloping supply curve of labor, that is, it can only hire additional workers if it raises the wages to its entire workforce? (Such an employer is known as a monopsonist.)
What is the least-cost combination of labour and capital to employ in producing 80 units of output? What is the profit-maximising combination of labour and capital for the firm to employ?
Do you think governments should step in and help an economy move to potential or are "markets" capable of fixing themselves? Carefully consider the impact of falling prices.
Marginal Analysis Think about a recent decision you made in which you used the tools of marginal analysis. Describe in detail the problem, the individual steps.
Use the b/c ratio method to select one of these two alternatives: alternative 1 has an initial cost of 100$, has annual maintenance costs of $5 per year and has potential damage costs of $950.
Sometime you need to wait until you determine the pricing of competitors. The reason why is simply because you do not know their pricing structure.
How does the government assure the public that (1) Banks are operating with "safety and soundness" (2) that their deposits are protected and (3) that banks are not taking excessive risk in lending and investing their funds?
explain the relationship between the price elasticity of demand and total revenue. what are the impacts of various
What characteristics of the industry make it a monopoly and what is the impact of the monopoly power on its customers?
What is the optimal way to induce the agent to put in a high level of effort? What is the optimal contract (if you are a risk neutral principal) to offer this agent?
A firm’s production function is given by: f(L,k) = L^1/2 , where L is the only input into production and it is variable in both the short and long run. Draw the long-run conditional labor demand in (L,Q) space (in other words, with L on the x-axis)
Suppose there are two types of firms in an industry. All the firms within each type are the same. What is the aggregate MAC curve for the industry? If the MPD curve for the pollutant emitted by the industry is MPD=2.8E, what amount of tradeable perm..
Many states provide firms with an "investment tax credit" that effectively reduces the price of capital. In theory, these credits are designed to stimulate new investment and thus create jobs
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