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A competitive firm has the production function q =f(L,K) =rad(L)+2rad(K) , for which MPl =1/2rad(L) and MPk = 1/rad(K).
a. Find the firm's conditional factor demands for L and K at the factor prices w = 4 and r = 2.
b. What is the firm's (total) cost curve at these factor prices?
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Consumer A values good 1 at $4,500 and good 2 at $1,500. Consumer B values good 1 at $5,000 and good 2 at $1,000. Costs are zero. Suppose the monopolist only sold the goods separately. What prices will the monopolist charge for good 2 to maximize rev..
Mr. Sansome withdrew &1000 from a savings account and invested it in common stock. At the end of 5 years, he sold the stock for $1207. In the savings account, he would have received an interest rate of 3%, compounded quarterly. He would like to compu..
The timeline should also reflect that it costs $2,000 for the loan origination fees. 4. What is the rate of return on your investment now? use excel.
How do you feel the study of Managerial Economics will benefit you as a business and household decision-maker?
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