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A firm that produce brownies has a production function: F(K,L)= (K^1/2 + L^1/2)^2. (Hint: for this question plugging in w=1 and r=1 sooner than later will save you some time with your algebra).
a?- First, find the optimal amount of capital and labor that this firm should hire if it wants to minimize its cost to produce q units of output.
b. solve for the cost function in terms of quantity q, that your firm is free to choose both labor and capital.
c. What is the firm marginal cost?
d. what is the average total cost??
How large is the economy of Japan? Japanese GDP in 2010 was 480 trillion yen (U.S. GDP, again was $14.5 trillion). The exchange rate in 2010 was 87.8 yen per dollar. What is the ratio of Japanese GDP to U.S. GDP if we don't take into account the diff..
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Consider the market for luxury yachts. The following graph shows the demand and supply for luxury yachts before the government imposes any taxes.
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A firm sells its product in a perfectly competitive market where other firms charge a price of $80 per unit. The firm's total costs are C(Q)=40+8Q+2Q2. how much output should the firm produce in the short run? what price should the firm charge in the..
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Excise tax is levied on the buyers of a good, then after the tax buyers will pay for each unit of the good.
How much an employee, who earns a minimum wage in Washington, must contribute to employment insurance, health care costs, minimum vacation requirements, and government pension plans ?
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