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Suppose a firm takes two inputs, labor and capital, as perfect substitutes.
a) In addition, this firm can substitute one labor for one capital. If wage is $2000 and rental rate for capital is $3000, what is the optimal labor and capital usage for this firm if it is to minimize cost?
b) If this firm can substitute two labors for one capital, what is the optimal labor and capital usage for this firm if it is to minimize cost?
Continuing with the modified balance sheet with $40 million in Level 3 assets, assume the bank issues an additional $3 million in stock and sells $20 million of its Level 3 assets for cash through the government's troubled asset relief (TALF) program..
Recently American Airlines started charging $15 for each checked baggage. Why did the company simply not charge $15 to $20 more per ticket, and quietly avoid this publicity? responses to this topic.
Output per worker yt = 4kt 1/3, the saving rate is 30 percent, and the depreciation rate is 13.3 percent. Calculate the steady-state values of capital per worker and consumption per worker.
List out the distinct characteristics of a perfectly competitive labor market and compare them to the characteristics of monopsony.
What is the highest possible total revenue that the team can hope to collect
Elucidate what happen in the short run to market supply and demand curves, market price, the firm's output, the firm's profit.
Explain how a group of nations could develop a cartel to maximize their profits of COFFEE. Be sure to address natural resources and/or factor endowments that could be leveraged in the creation of the cartel.
Illustrate what an identification and discussion of economic issues of special concern at the present time or in the future.
What are factors that shift supply curve for this good. How do you expect supply and demand of your selected good to change in next year. Relate your expectation to price and quantity.
At the moment, the market is completely ignoring things like record US trade deficits and the widening current account deficit. It is also largely ignoring the possibility of Federal Reserve rate cuts. Traders and investors are instead focusing only ..
Discuss the advantages and disadvantages of using divisional profits as the basics of incentive compensation for fivision managers compared to using company profits as the basis.
Suppose the market for gelato is perfectly competitive, and that gelato is a constant cost industry. The long-run cost function for producing gelato is TC(Q) = Q^3 ? 2Q^2 + 5Q. The demand for gelato is Q = 300 - 2p
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