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Suppose that the production function is If demand
is constant and labor productivity doubles, what happens to labor demand? What will happen to the wage rate if the economy has many firms in this position? Does this analysis support Baumol's law?
Suppose that the weights αm from the input to hidden layer are nearly zero. Show that the resulting model is nearly linear in the inputs.
If you pool all of the data and use OLS, what are you assuming about unobserved student characteristics that affect performance and attendance rate? What roles do SAT score and prior GPA play in this regard
First suppose that there is no population growth. Find the steady-state capital-labor ratio in the steady-state output level. Prove that the steady state is unique and globally stable.
For both sets of calculations, compare the firm's output price and the calculated average variable cost and average total cost. Should the firm shutdown immediately when the total fixed cost equals $1,000,000
Prove an equivalent of Theorem 5.8 in this environment with the extended set of bonds.
Abby consumes only apples. In year 1, red apples cost $1 each, green apples cost $2 each, and Abby buys 10 red apples. In year 2, red apples cost $2, green apples cost $1, and Abby buys 10 green apples a. Compute a consumer price index for apples ..
w=10, r=25. The price of output is constant at $50. The production function is f(L,K) = L^.5K^.5.If the current capital stock is fixed at 1600 units, what is L* in the short run How much profit will the firm earn
Suppose Springfield's economy moves into a recession and Y falls to $9 and rising unemployment allows widget makers to reduce wages to $18 per hour. What happens to the supply and demand curves.
When the price of oranges increases from $1.00 per pound to $1.50 per pound, quantity demanded falls from 500 pounds to 400 pounds. Calculate the price elasticity of demand. Is the demand for oranges price elastic, inelastic, or unit elastic.
The banking market in Athens, Ohio, currently has four banks with market shares of 60%, 20%, 15% and 5%. The two smallest banks have proposed merging. Under the standard merger guidlines of the Federal Reserve and the Justice Department.
A monopsonist's demand curve for labor is given by w = 12 - 2L, where w is the hourly wage rate and L is the number of person-hours hired. a. If the monopsonist's supply (AFC) curve is given by w = 2L, which gives rise to a marginal factor cost cur..
Suppose that the market demand curve for a new drug is represented by P = 100 - 2Q, where P is the price in dollars per dose and Q is the annual output. (The marginal revenue curve is MR = 100 - 4Q).
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