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Zuppann, Inc. has just completed a study of its production process for gadgets. It uses labor and capital to produce gadgets. It has determined that 1 more unit of labor would increase output by 200 gadgets. However an additional unit of capital would increase output by 150 gadgets. If the current price of capital is $10 and the current price of labor is $25, is the firm employing the optimal input bundle for its current output? Why or why not? If not, which input's usage should be increased?
Calculate the forward premium on the British pound for the Dutch investor where exchange rates are in euros per pound. Is it positive or negative? why do investors require this premium/discount in equilibrium.
All this is known to both players. Suppose both players behave according to the level-k thinking model discussed in class. Two players simultaneously guess a number.
Is the price mechanism of a perfectly competitive market a good mechanism to allocate gasoline.
Consider a product market for a normal good. Suppose consumers' income increases. Explain what will happen to labor demand for firms in that market.
illustrate what is the profit maximizing quantity that should be offered to Group B
An automobile plant is capable of manufacturing 40 sport utility vechicles in 24 hours. this details the manufacturing plant's
What are the most important things to consider when making a pricing decision for a good whose demand as well as is elastic.
Explain how does the existence of money reduce the costs of making transactions, relative to a society based entirely on barter.
As a business owner making a final decision regarding the international aspects of a business decision, you may decide to set up a table with the risks and weigh their relative importance against the rate of return you foresee
Assume a firm has a patent on one of its products whose sale generates $32,700/year more revenue than production costs. If the annual interest rate is 20 percent, what is the market value of this patent.
Where Q is the production and V is the number of employees working 8 hours a day
Besides elections and campaigns, do the major political parties influence public values and ideas.
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