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An economy has the technology of production: Y = K L^(1/2)
a. does this technology satisfy constant returns to scale?
b. does the technology display diminishing returns to capital?
c. calculate the share of GDP that would go to capital and the share that would go to labor if the real wage and the real rate of return were equal to the marginal products of labor and capital
Illustrate what type of organization has a high fixed cost and low variable cost balance to run its operations. Discuss the balance of fixed and variable costs for the organization.
Many automotive dealerships, such as BMW, sell low mileage late model used cars (often cars that were initially leased for 1-3 years) with warranties on defects and repairs that offer more coverage for longer periods of time than the warranties on th..
Investors in the JMJ Group purchased hotel resort in April. The group paid $25M for the building and the land. The land was appraised $5M. The group sold the resort 3 years later in August for $30M. The land was appraised then at $10M. If the income ..
Illustrate what is the capital account balance. Illustrate what is the financial account balance.
What is the difference between the Federal Reserve’s “discount rate” and the “federal funds” rate? Why is the discount rate in the US not as important in financial markets as the federal funds rate?
While purchasing _____ an individual whose cost of time is low will visit a larger number of dealers compared to the individual whose cost of time is high.
If the par value of the common stock is 5 dollars and is sold at market for 10 dollars does the company get the extra $5? Also how is the company affected by the market value going up and down?
The bar exam for lawyers is written by practicing lawyers. Why might having practicing lawyers write the exam limit the entry of new lawyers into the profession? Why might they want to limit entry?
In fact, an insurance agent explains that he is always true. Nevertheless, the engineer buys fire insurance. Explain why this is or is not a logical decision.
The production possibilities frontier model shows that
Maintenance costs on a bridge are $5,000 every third year starting at the end of year 3. For analysis purposes, the bridge is assumed to have an infinite life. What is the Capitalized Equivalent (CE) cost of these infinite payments, assuming an annua..
Wong subscribes to the 6M plan and uses 150 hours a month. Suppose that Wong's demand curve is a straight line such that if the price of access were HK$20 per hour or higher, she would buy nothing. Draw her demand curve, and calculate her buyer surpl..
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