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A firm is making a long-run planning decision about the optimal size of a new plant and its labor force. It decides to build a medium-sized plant and hire 100 workers. Engineering estimates suggest that at those levels, the marginal product of capital will be 100 and the marginal product of labor will be 75. If the wage rate is $5 and the rental rate on capital is $10, is the firm making the right decision?
What is the role of the Economies of Scale on the expansion of Gap, Inc into Rome Italy.
Illustrate the short run effects on the macro-economy by using the aggregate supply-aggregate demand model. Be sure to indicate the direction of change in Real GDP, the Price Level and the Unemployment Rate. Label all curves and axis for full cred..
Formulate a linear programming model for this problem, clearly defining the decision variables and listing the objective function and all of the constraints.
Explain the impacts of an expansionary fiscal policy such as a tax cut on the levels GDP, Consumption, Investment, interest rate and unemployment and price.
Elucidate what would happen to equilibrium price and quantity in the market for Pepsi if the following occurred.
How independent is the Federal Reserve? Based on the experiences of the Fed in the U.S., as well as other central banks, do you believe that the Fed should be independent? Provide both pros and cons in your argument.
The Kinked demand curve in an oligoolistic market is represented by the following:P = 100- Q and P = 120-2*Q
Is either of the selected countries still in an agrarian phase of economic development? An industrial phase? Explain. Can you find a country that is still in the agrarian phase of development
Discuss the comparative advantage(s) of your selected regional trading blocs. Identify the major risks associated with doing business in the selected trading blocs.
Suppose the following output and labor hours for Russia and Germany in producing Wheat and Cloths.
Tom have only $60, and he want to spend it all on clothing (X) and food (Y), Price of clothing is $4. Find out the optimal values of both goods (Y*,X*) and Utility?
you are given the following information. the current dollar-pound exchange rate is 2 dollar per pound. A u.s. basket that costs 100dollar would cost 120 dollar in the UK. For the next year , the fed is predicted to keep US inflation at 2% and the ..
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