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Suppose a firm finds that the marginal product of capital is 60 and the marginal product of labor is 20. If the price of capital is $6 and the price of labor is $2.50, describe how the firm should adjust its mix of capital and labor? What will be the result?
Identify at least four (4) key points of a relevant economic article from a newspaper. The article must deal with any course concepts covered in Weeks 1-8. (Concepts covered- GDP, Demand, Supply, Market equilibrium, monopoly and price discrimination ..
Let C=consumption, I=private investment, G=government purchases, Xn=net exports. Which of the following best represents the equation for GDP?
Which liability rule induces the victim to take positive precaution? Which liability rule induces the injurer to take positive precaution? Under what circumstances should the law prescribe "no liability"? How about "strict liability"?
Indicate whether or not each of the following examples of business behavior are legal or illegal under current antitrust law, and mention whether violations under the Sherman Act, Clayton Act, and/or Federal Trade Commissions Act are involved. Pro..
Explain what David P. Reed means when he talks about cooperation gain. A wireless device is using a cooperative commons to connect to a gateway to the Internet.
Gamma corporation one of the firms which retains you as the financial analyst is considering buying out Beta Corporation. Discuss how these data provide evidence of inefficiency. How could the new manager of Beta Corporation improve efficiency?
A revolutionary technology used in the production of brown rice lowers its cost of production given ceteris paribus. As a result, the market changes to a new equilibrium because of a(an)
When the economy is operating at full employment, why is an increase in aggregate demand not helpful to the economy? When the economy is hit with a supply shock, such as oil prices rising from $25 a barrel to $75 a barrel, why is this double disrupti..
1. consider the model of corruption explored by shleifer and vishnirsquos where there is one government-produced good
If technology advances so that computers become more useful to the firm.what happens to the marginal product of the two types of workers.
Calculate the profit for that level of output, as well as the level of output immediately above and below it and what level of output will this firm operate at in order to maximize its revenues or minimize its losses?
Some lenders charge an up-front fee on a loan, which is subtracted from what the borrower receive. This is typically described as "points"(where one point equals 1% of the loan amount).
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