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In a regression of average wages (W, $) on the number of employees (N) for a random sample of 30 firms, the following regression results were obtained
a. How do you interpret the two regressions?
b. What is the author assuming in going from Eq. (1) to (2)? Was he worried about heteroscedasticity? How do you know?
c. Can you relate the slopes and intercepts of the two models?
d. Can you compare the R2 values of the two models? Why or why not?
Your firm's the production function: Q = 4K^1/2L^1/2 Suppose that the price of labor is $5 and the price of capital is $20. Your firm desires to produce 200 units of output. How much labor will be hired to minimize the costs of producing 200 units..
In the Keynesian cross, assume that the consumption function is given by: C=200+0.75 (Y-T). PLanned investment is 100, government purchases and taxes are both 100. a. Graph planned expenditure as a fraction of income. b. What is the equilibrium lev..
Why must a firm prevent resale if it is to price discriminate successfully?
What is the effect of a $1 specific tax on equilibrium price and quantity if demand is perfectly inelastic? What is the incidence on consumers? Explain.
1. Job A pays $30,000 a year. Job B is completely identical in all aspects except it is located in an area that has a 10% higher cost of living. In order to compete, Job B would need to pay. This is known as a. 2. Explain the difference ..
Mr. Smith wishes to sell a bond that has a face value of $1,000.The bond bears an interest rate of 8%,with bond interest payable semiannually. Four years ago, the bond was purchased at $900.
Shouldn't the decline in housing prices have resulted in an increase in home sales, as suggested by a basic model of supply and demand?
An agent for a residential real estate company has the business objective of developing more accurate estimates of the monthly rental cost for apartments. Toward that goal, the agent would like to use the size of an apartment, as defined by square..
Find an expression for the output per worker as a function of the capital-labor ratio.
Why do economists think that discrimination in the labor market is an unlikely explanation for the persistent inequality in earnings between women and men and among the races?
youve recently learned that the company where you work is being sold for 380000. the companys income statement
What do you know about these cultures-specifically their economic, political, educational, and social systems-that could help you in getting them together?
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