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Suppose that for a firm that digs ditches for laying cable or pipeline, backhoes and backhoe operators are pure complements in production, being used on a one-for-one basis. Draw the isoquants (on a graph with backhoe, “K”, and backhoe operators, “E”, on the axes) for the production of three different quantities of ditches. Do they have a “funny” shape?
a) Now consider one such ditch-digging firm that has five backhoes but employs six backhoe operators. Can you explain why this might make sense?
(Hint: think about whether/how the marginal product of the sixth backhoe operator could be positive)
b) Now suppose you see another ditch-digging firm that has seven backhoes but employs six backhoe operators. How could this make sense?
Impact of Black-Money inclusion on inflation and money supply? Assumption is government confiscates unaccounted black-money from economy and spend that on projects.
Millions of dollar spent to make the software But after it has made the software, the costs in distributing it to customers "entails low incremental costs that is virtually zero".how should the curve look like.
If people hold no currency and travelers checks, banks loan out all excess reserves. What would the new money supply be if the fed purchases bonds worth 1 billion from the public?
The government is considering a policy to reduce air pollution by restricting the use of "dirty" fuels by factories. In deciding whether to implement the policy, how, if at all, should the likely effects of the policy on real GDP be taken into acc..
Demand for DVD rentals at a video store is described by the equation: Q= 4,000-500P, where Q denotes the number of DVDs rented per week and P is the rental price in dollars.
the united states has had a significant trade imbalance for several years. what are the problems associated with
How much insurance should I buy to be fully insured and what is a fair insurance premium?
i. the quantity demanded of lobsters is 012345 and 6. the derived total utility is respectively 0 15 23 25 25 22 and
A portfolio manager has maintained an actively managed portfolio with a beta of 0.5. During the last year, the risk free rate was 2.5% and equities performed very poorly providing a return of -20%. The portfolio manager produced a return of -10..
Imposition of stricter environmental protection laws.
Find the expected value of the lottery induced by accepting the second wage offer and find the expected utility associated with the second offer.
What price does it pay for the factor?
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