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Suppose a firm finds that the marginal product of capital is 60 and the marginal product of labor is 20. If the price of capital is $6 and the price of labor is $2.50, describe how the firm should adjust its mix of capital and labor? What will be the result?
Discuss the major causes of global warming, the expected effects providing an indication of which effects are likely to be the most important economically, and identify the greatest uncertainties surrounding global warming.
Why is popcorn so expensive at the movies? Argue both that a high price for popcorn is price discrimination and then argue that it is not price discrimination.
Derive and plot Hugo"s Engel curve for donuts. Explain how much does his weekly budget have to rise for Hugo to buy one more donut per week.
Is the apple pie market perfectly competitive? Why or why not? b. With this data, draw a graph of the linear demand curve for Granny's apple pies. c. Find the price elasticity of demand at each of of the three prices.
The market for DVD rentals in Dallas, Texas, is estimated to be P= 10-0.002Q. Marginal cost (MC) of rental is equal to $2. Where PD is the price (per DVD in $) for DVD QD is quantity of weekly rental. The marginal revenue (MR) for rental is equal to ..
Why does the Federal Open Market Committee use operating and intermediate targets rather than focusing only on the ultimate goals? What is the most important consideration in determining the best monetary aggregate for the Fed’s intermediate targets?
q. mining is proposed for a wilderness area that provides two benefits recreation due to backpacking opportunities and
In 2012, Peter Pan’s Pizza Pizzeria produced and sold 10,000 pizzas at a price of $8 each. In 2013,Peter Pan’s Pizza Pizzeria produced and sold 12,000 pizzas at a price of $9 each. How much did Peter Pan’s Pizza Pizzeria contribute to nominal GDP (in..
What are the benefits and challenges when implementing Industrial policy? How does comparative advantage relate the implementation of industrial policy?
What is the process by which a recessionary gap closes itself? Explain. Why might this self-correcting mechanism work slowly in the face of a recessionary gap?
Does the existence of poverty imply that our socioeconomic system is unjust. Does the concentration of poverty in certain groups make it more unjust than it would be otherwise.
Government increases its spending by $2 billion and raises taxes by $1billion. Illustrate what happens to equilibrium income.
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