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A firm has offices in London and New York. Fractional units of labor can be employed in each location (as part-timers can be hired) and the headquarters could be in either city. The minimum viable office staff is one full-time employee, and the minimum size of headquarters is three full-time staff. Sketch the isoquants, in terms of labor inputs into the two offices, and explain why these isoquants are not convex.
Consumption accounts for about 60% of GDP, while investments accounts for about 20% for GDP. But many economists think that, to understand economic recession, it is more significant to look at investment than consumption. Why?
Which of the following strategies are used by businesses to capture consumer surplus? Nash equilibria are stable because
Use the IS/LM model and the IS-PC-MR model to explain what monetary policy to pursue.
A monopolist faces the demand curvep =11 - Q , where Q is measured in thousands of units. What is the monopolist profit maximizing price and quantity? What is the profit?
What is the difference between the medium of exchange and the store of value? What is the difference between commodity money and fiat money?
How income may change savings behavior
Suppose there is an increase in risk aversion by wealth holders in the sense that, other things equal, they want to hold more of their wealth in money (bank deposits) and less in securities.
When the Bank of Canada sells the government bonds to a commercial bank, the commercial bank experiences a decline in reserves and in increase in bonds. Total assets are unchanged; this is just a portfolio switch between bonds and cash.
Find out the average total cost and average variable cost as a function of the level of output. Assuming the firm has the same cost curves in the long-run for q>0 and C (0) =0, how much will it produce in the long-run?
Essay on Market imperfection associated with negative externalities
The manager of a national retailing outlet recently hired an economist to estimate the firm's production function. Based on the economist's report, the manager now knows that the firm's production function
Select any low income country (or countries) on which you can find data on the following (a web search should yield you the required information)
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