Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
A car manufacturer can choose to locate a new plant in country A or country B. Your job is to determine where to locate this new plant. The only inputs used in car production are labor and capital, and the production function is Cobb-Douglas: F(L; K) = L½K½, where L is the labor input and K the capital input. In country A, labor costs $7 per unit and capital costs $7 per unit, while in country B, labor costs more ($8) but capital costs less ($6).
a. In which country should you locate the new plant so as to minimize cost per unit of output (i.e., average cost)?
b. Now assume that country A subsidizes labor so that labor costs $6 per unit in country A. Does it change the location decision of the firm?
c. Instead of subsidizing labor, suppose that country A subsidizes capital so that capital costs $6 per unit. Does it change the location decision of the firm?
d. What happens if both countries act identically in either taxing or subsidizing capital and labor? What would be the location decision of the firm? Has any country an incentive to alter its tax-subsidy choice, and if so, how?
The firm prefers to have type M in job D type U in job E. In the best outside option, the candidate is paid $80,000 a year. The monetary value of disutility in the job D is $15,000 for type M and $30,000 for type U.
What generalization can you make from this exercise?
Suppose that aggregate production function in a particular economy is given by Y = (N/60)[5080 - N] where N is the size of the labor force. Establish algebraically whether this production function exhibits increasing, decreasing, or constant returns ..
sales 1990 116 1991 105 1992 29 1993 59 1994 108 1995 94 1996 27 1997 119 1998 34 1999 34 2000 48 2..
Could it be profit maximizing for some firms to adopt the new technology but not profit maximizing for other firms to adopt that same technology? Which firms would choose to adopt the new technology? How would they be different from the firms that..
Explain what you will do during the implementation event to tilt the balance away from the presentation toward participation.
Assume that Country A has a population of 500,000 and only produces one good- car. Country A produces 100,000 cars per year. The people in Country A purchase 90,000 cars, but there are not enough cars to fulfill all the demand.
A consulting company plans to purchase a new computer network for $125,000 to save $35,000/year over its projected 9 year life from doing all their CAD activities in house.
Assess the behavior and decisions of individuals and firms for their relation to the microeconomic framework
What would be the profit for the given number of students?
A put option has parameters: X=1.8, S=1.82, R=.05, Volatility of14% and T=90/365 What is the price of the put option when S=1.81 one day later i.e. T=89/365.
What is the technique of percussion and palpation of the chest wall for tenderness, symmetry, bulges, fremitus, and thoracic expansion? Explain.
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd