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Problem: Draw an isoquant/isocost diagram that shows the following scenario. A firm using 10 units of both inputs to produce an output of 100. Label this point A. Suppose the price of input 1 (the horizontal axis input) increases. Draw a new isocost that still allows the firm to produce 100 units of output. Label this point B. Indicate clearly what happened to the use of input 1 and 2. Will it cost more for the firm to produce at point B or at point A and why?
What is the mid-point (averages) formula for elasticity of demand? What does it measure? What do the values (1), (2), and (.50) indicate? What are the determinants?
Explain why hyperinflation has such a devastating impact n economies. Explain what it takes to stop hyperinflation Describe the three types of unemployment. What types of government programs would be most effective in combating each type of unempl..
Explain the effect the policy has had on the Australian economy, as well as the impact its removal might have on the Australian economy.
Can you attach a number to your explanation? In the model, by how much would wages rise if a third of the population died from disease?
Consider a situation in which a risk-neutral principal wishes to contract an agent to work on a project. The project produces output x = e + e.
A 10-year, $10,000 bond will be issued at an interest rate of 8%. Interest is paid annually. Interest rates have fallen since the planning for this bond.
Patricia is evaluating three major attributes that she considers important in her choice: taste, location, and price. The value she places on each attribute, however, differs according to what type of restaurant she is going to start.
You are in the market for a new car. Create an economic model modeled after the expectancy model you can use in buying a new car, the expectancy model can be.
How many firefighters will be hired? Calculate the net total benefit to the group if 3 firefighters were hired. If there is a positive net total benefit.
The management of Madeira Manufacturing Company is considering the introduction of a new product. The fixed cost to begin the production of the product.
Track exchange rates, interest rates, and GDP (and any other relevant measures) for Dominican Republic for the past 10-20 years (compared to the United States or another relevant country) and discuss the numbers in terms of the theory we have covered..
What are some of the reasons for the largest immigrant trend in the US since the 1970s and although the public has always been divided over bilingual education, why is this truer today than ever before?
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