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A firm has a production technology that permits it to turn 1 unit of good 1 into 2 units of good 2. If the price of good 1 is 1, at what price for good 2 will the firm just break even? Graph the firm's profit as a function of the price of good 2.
What is the short-run marginal cost curve b) What is the equation for average variable cost c) What is the minimum level of average variable cost d) What is the firm's short-run supply curve
A U.S. firm is considering moving its production to Mexico. Its estimated production function is q = L 0.5 K 0.5 . The U.S. factor prices are w = r = 10. The Mexican factor prices are w* = 5, r* = 10. What is the optimal input bundle ( L,K..
Verify that the total annual costs aggregated from individual test costs equal the total annual costs of the laboratory given in the table above
The number of pounds of coffee they pack in a day is given by the production function Q = F(L) = 10L, where L is the number of hours of labor they hire. Graph their production function.
1. What are the profit-maximizing price and output levels for Paradise Shoes? Describe and calculate the profit-maximizing price and output.
Home has 1,200 units of labor available. It can produce two goods, apples and bananas. The unit labor requirement in apple production is 3, while in banana production it is 2.
n 2001, Statistics Canada estimated the labor force at 16,109.8 thousand, employment at 14,946.2 thousand, and the working-age population (15+ years of age) at 24,444.3 thousand. a)Calculate the labor force participation rate for 2001.
Use a Keynesian 45-degree diagram to show the effect of an increase in government spending and how could a reduction in tax rates increase government's tax receipts?
the charlotte bobcat's a professional basketball team has been offered the opportunity to purchase the contract of an aging superstar basketball player from another team.The general manager of the bobcats wants to analyze the offer as a capital budge..
You hear the argument that a reduction in the deficit will increase consumer and business confidence and thus reduce the decline in output that would otherwise occur with deficit reduction. Is this argument valid?
Assume that the going wage in agriculture is normalized at 1. The wage in the formal urban sector is 3. The wage in the informal sector is 0.5. Additionally, 20% of working adults who live in the city are employed in the formal sector. Also, assum..
A cash manager purchases $1 million in commercial paper with one month remaining until maturity. At maturity, the cash manager will receive the face value of the security. What will he pay for this security
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