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Suppose the production function is Cobb-Douglas, y = x 1/2 1 x 3/2 2. What is the technical rate of substitution? Does this technology demonstrates increasing, decreasing or constant returns to scale?
Analysis of Pricing: You manage MBA Deli which sells meals at a price of $6 each. The average number of meals sold per month is 7,000. MBA Deli would like to increase its sales and profits. The MBAs running the Deli, know that if price is lowered, th..
Suppose that the following is true: "When w = v = $10 , the cost-minimizing bundle for q = 100 units of output is k = l = 20. When w = $8 and v = $10 , the cost minimizing bundle for q = 110 units of output is l = 28 and k = 19." When w = v = $20 , t..
Which of the following believes that modeling of economic markets is too complex to model effectively? Which of the following is most closely associated with "supply-side" economics? Which of the following is schools of thought dominated the economi..
Scenario Kian and Rachel own a toy factory. Kian can build six toy ships per hour, earning a total of $30. Rachel can build two toy ships in one hour, earning $10. Kian and Rachel’s friend Jeffrey asks if one of them would build a dollhouse for his d..
Andrea’s Day Spa began to offer a relaxing aromatherapy treatment. The firm asks you how much to charge to maximize profits. The demand curve for the treatments is given by the first two columns. The total costs are given in the third column. For eac..
Political scientists usually conclude that voters dislike negative campaign ads, but we can use game theory to offer an explanation for why they continue
What are the trade-offs we make in financial decisions? Please explain.
Suppose the marginal propensity to consume equals 0.8 (i.e., c1 = 0.8). Given this information, which of the following events will cause
In the northeast US and in eastern Canada, many citizens heat their homes with heating oil. Suppose you are one of these people, and you are expecting a cold winter, so you are considering your heating oil requirements for the season.
Suppose people only consume bread and cheese. These are consumed in ?xed proportion: two slices of bread and one slice of cheese. Output in each sector is produced using labour only as Yb = AbLb Yc = AcLc and assume total labour in the economy is Lb ..
How did the cartels in Latin America manage to limit the flow of drugs in different markets?
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